Business Philosophy
Given the permanent nature of our capital, we view the optimal hold period for a growing, profitable business to be forever. We believe a hold forever philosophy is in the best interest of our companies, as it allows management and ownership to ignore short term noise and focus on making investments which will strengthen a businessʼ competitive position 10+ years into the future. Our ambition for each portfolio company is that with a long-term oriented decision-making mindset and a shared penchant by management and ownership to take smart risks, we will be able to achieve exceptional rates of long-term sustainable growth.
Although our ideal hold period is forever, we recognize that many great operators prefer to build and sell businesses, and we are excited to partner with these operators and entrepreneurs as well. Our principal goal is to be good partners with everyone that we do business with. We strive to keep it simple, be straightforward, and be the business partner of choice.
We believe in letting a good CEO run their business with autonomy. If they want advice, we are happy to provide it. But in most circumstances, if you have a good business with a good management team, what we bring is an encouragement to think big, be ambitious, and be tolerant of taking smart risk. We bring a strong balance sheet with significant liquidity which allows companies to strike when they see opportunities which before our ownership they may never have considered pursuing. We encourage our companies to invest for the long term and not worry about the short-term impact that investments/smart experiments can have on earnings.
Given that we are owned by a single individual, we are extremely nimble, with no boards or committees and the ability to make decisions quickly. We can be highly creative and take risks that are not down the centre of the fairway for most investment firms.
We are patient, we wait for “the stars to align” and when they do we like to swing big. We get excited about deals with strong economics, great management teams, and reasonable valuations.