A New
Investing
Approach
After recognising the Equity Gap faced by established businesses operating in Backbone Sectors, at Alderway we developed a new investing approach - Partnership Capital. This approach means true alignment of interests on both sides. We give exceptional entrepreneurs with self-funded, profitable businesses, within sectors that are often overlooked and undervalued, the investment and support they need to unlock value and achieve remarkable returns.
The Equity Gap
There is a critical equity gap faced by established businesses for whom raising growth capital from traditional routes like high street banks, Venture Capital or typical Private Equity is either not possible or not suitable.
Those likely facing this gap are often operating outside of London and the South East in key, but often underappreciated sectors, like Downstream Healthcare, Construction and Engineering, Logistics, Automotive, Agriculture as well as Energy Transition and sustainability.
Many established businesses don’t have access to VC & feel traditional Private Equity isn’t right for them.
At Alderway, we want to address this disparity by empowering overlooked innovators who are driving growth in these critical industries. By providing growth capital and cash-out options, we enable established entrepreneurs to de-risk their personal finances and reinvest in their businesses. Additionally, our tailored support through the Value Creation Programme equips them with the strategic guidance needed to navigate the challenges and opportunities of growth.
More than two-thirds of British equity investment occurs in London and the South East.
Partnership Capital: An Aligned Approach
Flexible Ownership
We take a significant equity shareholding in the business giving us ‘skin in the game’ but we work with you in a true Partnership.
Fundamentals Focused
With a price-disciplined mindset, we invest in businesses already profitable and cash generative with proven economics and supported by long-term trends.
Alignment
We’ll only invest where we feel there is alignment in the direction, growth and exit path for the business and the entrepreneur. We exist to help you win.
Cash In
We invest enough capital in the business to ensure growth plans can be met. Typical cheque size ranges from £3m to £25m.
Cash Out
We help entrepreneurs realise some early liquidity to sharpen their business focus, whilst retaining a substantial stake for an exit event.
Value Creation
We only invest in businesses where our experience and guidance will help accelerate growth.
Backbone Sectors: Untapped opportunities hiding in plain sight
Why Backbone Sectors?
We aim to support businesses operating in sectors crucial to the economy, representing $80 trillion of the world's $100 trillion annual GDP. These are the sectors we refer to as Backbone Sectors.
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Within these sectors, wide defensive moats, pricing power, high margins and strong macro tailwinds are prevalent and despite their economic significance, as a proportion, they are historically underfunded by Venture Capital, compared to software and tech-led industries.
