Investment strategy:

We will seek investments that in the first instance offer an annual income stream while over the long term offer capital growth. We will be more focussed on the abilty of our assets to generate sustainable profits and free cash flow rather than the volatility of the investment value on the short to medium term. While we won’t set absolute investment size parameters, we do anticipate a minimum of $5 million and a maximum of $20 million of equity per investment. At initial investment time we will take into account the potential for further deployment of capital into investee companies to support organic growth, new business initiative, consolidation / aggregation and bolt-on acquisitions. For investments that require in excess of $20 million we will look for co-investment partners, subject to out role as manager of the investment not being diminished. We are flexible as to the nature of the instrument we utilise in making our investment and do not necessarily require a controlling stake. Whilst not requiring day-to-day involvement in the business, we would only invest where we can play a meaningful role, typically at board level. Our role may include but is not limited to involvement in strategic and financial planning. Assisting with acquisitions and other business initiatives. In all cases, we will only invest on businesses with an existing strong and credible management team who have meaning equity incentives.

Investment attributes:

We so not favour any one particular industry or sector instead we will consider a broad range of potential investments based on the following criteria:

  • Sustainable free cash flow that warrant the investment value in line with our belief that the present value of future free cash floes is what defines value.
  • Ability to build up long term enterprise value
  • Experienced management teams with a strong track record in the sector/industry in which the business operates and with cultural alignment to Global Capital
  • Positioned for strong organic growth or growth through acquisition and ability to provide an income yield
  • Businesses that are well established
  • Levels of gearing suitable for the types of business and industry in which it operated
  • Our ability to add value to the investee company.

We will not invest directly in start-up companies or provide venture capital.