many investment firms, success is measured by the speed of an
exit (sale, merger or IPO). Investors are pressured to generate
the highest possible internal rate of return (IRR) so they can
use this metric to raise a new fund. This exit-centric focus can
often be detrimental to a company’s long-term prospects.
very patient strategy: We're willing to hold on to
our portfolio companies well beyond the 5-year investment time
horizon typical of private equity firms. We implement conservative
capital structures and develop strategic
growth plans that lead to sustainable, healthy growth. Our decision
to sell is never driven by a need to generate quick profits
or a high IRR.