We believe that by investing with other likeminded groups we can achieve more and even bring about real change. Of course, we want to build long-term monetary value, but we also want to contribute to building good and sustainable companies for the future. We creatively search for the right people with interesting ideas and inspire them to instill our values and ethics into their operations, by creating sustainable enterprises.
We see environmental, social and governance (ESG) issues as vital drivers of building better businesses over time. We can always do more, but we will continue to strive to work together with our partners to create a better overall business situation in the companies we invest in. Our team tries its best to drive these values within our existing portfolio and over time we will continue to identify and follow-up on relevant ESG subjects.
Sustainable investment is not just about environmental or ethical considerations, it’s about trying to do intelligent investment in businesses that will benefit everyone: employees, shareholders, customers and the wider community.
Since our beginnings we have primarily focused on Relationship Investments. This means that we make significant minority investments in company-situations where a deeper partnership can add value and help generate outperformance. We look for relationships where we can contribute to transformative growth opportunities, improve balance sheets or inspire significant shareholder transitions. Additionally, we apply the approach to fund structures where we clearly see that we can add long-term value, such as on investment committees and boards where our company background and history of investing in non-listed assets can make substantial contributions.
For many, assessing risk has been based on the assumption that the existing state of affairs will continue indefinitely. But, as economist Hyman Minsky reminded us, “Each state nurtures forces that lead to its own destruction.”
To us, financial risk is the chance of facing permanent losses, which is very different from volatility or fluctuations. Rather than seeing risk simply as a number, we also take intuition into account, which cannot be quantified. Overall we therefore relay to our investments in rather qualitative terms.
Finally, we believe that we can reduce risk by being an engaging partner. Each team member adds his or her own experiences and natural ambition to learn and grow and together with our relations we work hard to help driving performance in targeted deals. That way we can offer long-term staying power as a solid reliable partner.
Our Governance is based on the EU directive on Alternative Investment Fund Management (AIFM) and is regulated by the Luxembourg CSSF, to which we are strictly accountable and which has shaped our policies and rules. To ensure the long-term support and trust, we place a high value on complete transparency with our capital providers.
As a regulated entity we are held accountable as described above. Our firm’s daily dealings are operated at arm’s length from the Fund, adhering to the set requirements and set out practices that govern our board and employees. We are externally audited and produce annual accounts. We voluntarily aim to over time exceed ESG requirements and related responsible investment practises because we believe that it clearly benefits society and our investments in the long-term.