Our lower mid-market buyout strategy is centred around investing with next-generation fund managers (Funds I, II, III) through primary fund commitments, co-investments and continuation vehicles, who exhibit high motivation and potential for success. We prioritise managers where we have a strong conviction in their ability to drive exceptional performance.
- We invest in the hard-to-navigate and underserved lower mid-market. We look to invest in opportunities that present an asymmetric risk/return profile, combining strong downside protection with multiple avenues for achieving outsized upside returns. As a result, we look for strategies that are centred around active value creation in high quality, high growth companies with strong management.
- We prioritise value creation through revenue growth and operational improvements, rather than financial engineering or leverage. Our partnerships with experienced company operators are key to this strategy. We invest in high quality companies, with strong potential for sustained profitability and cashflow generation, underpinned by enduring competitive differentiation and secular growth tailwinds.
We look for managers with deep domain expertise and specialisation that is difficult to replicate. This expertise is usually concentrated around a combination of sectors, geographies and/or investment styles. This specialisation enables us to better understand market trends, invest alongside secular tailwinds and capitalise on growth opportunities.
Given the characteristics we seek across managers and companies, our portfolio is concentrated around high growth segments within Healthcare, Technology, Consumer, Industrials and Business Services.
- We partner with managers who invest in companies providing essential products and services, ensuring long-term sustainability and market relevance.
Our ability to co-underwrite transactions and offer novel financing support (such as warehousing, mid-life co-investments, fundless sponsor investments or continuation vehicles) positions us as a preferred co-investment partner.
Our team has demonstrated strong investment selection with 85 co-investments driving alpha. Our ability to source and build quality relationships has resulted in a high co-invest yield, achieved from fund relationships.
;
