Our approach is to identify opportunities that arise from complexity, dislocation or changes in technology and regulation that create the potential for outsized returns per unit of risk. We actively seek opportunities with rewards and risks that are more idiosyncratic and uncorrelated in nature – e.g., those less reliant on favorable performance of the equity and bond markets. We believe that the rewards for creatively applying this strategy to proprietary opportunities are in most cases superior to those available by competing in broad auction processes.
We aim to form highly collaborative partnerships with our investors and with management teams, so that we are combining the right capital with the right managerial competencies in order to maximize the value of our investments. Finally, we believe in an intensive approach to guiding and adding value to our portfolio holdings, including by providing strategic counsel to management and access to our firm’s resources and professional networks.
In addition to understanding the dynamics affecting particular industries or sectors, we believe it is important to have the experience, capacity and flexibility to invest in businesses at all stages of development, including:
- Partnering with experienced founders at inception, where we believe a new entrant has the greatest chance for success and an investment can be structured with significant downside protection (e.g., buying assets plus optionality on a platform)
- Providing growth capital to existing businesses where we believe the management team is particularly strong and where our experience, along with our capital, can help the company grow and succeed
- Collaborating with more mature companies to help them achieve their particular objectives with an experienced, creative, collaborative, discreet, and trustworthy partner