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Investor involvement

We believe our investor-engagement model is unique
in the private equity world and it has opened us up to
individuals who have always managed their own
investments in the past.

It seems crazy to us not to tap into the networks of our Investors for potential acquisitions, or their wisdom as extra advisors. If we cannot convince them that a plan – let’s say an export channel – is a good idea, the chances are they are right and it is better to learn that before the fact! We know that un-invested funds burn a hole in the pocket of fund managers, and that many get a rush of blood to the head – and our systems will not let that happen!
 
The Managers’ acquisitions are defined by an Investment Profile, a set of 18 parameters; within those the Managers are free to invest without further consultation, but if they wish to deviate from this they must secure a shareholder vote in favour from the Investors of greater than two-thirds - in short a compelling case must be made.
 
There are three formal Investor Meetings each year (November, March and July) to address different aspects of the Fund’s strategy and performance. Board papers go out two weeks prior as well as quarterly financials for each subsidiary (absolute transparency is the standard) and written reports by the Independent Directors. 
 
More than that, the Investors go on the journey with the managers. Site tours, product launches, patent applications, trade show invitations, early notice of innovation and change – they are kept informed by the Managers because it is exciting and fascinating to learn about whole other industries. The Investors could have bought another commercial building, but they want involvement – to drive past something on the motorway and say ‘we make that’!
 
However, participation by an Investor is not mandatory; Investors who are unavailable (overseas, on the boat etc.) or unwilling can rest easy knowing that a respected group of their peers is keeping an eye on things!
 

Investors exercise Control by:

  • Authorising changes to the Investment Profile
  • Authorising, modifying or vetoing acquisitions outside the Investment Profile
  • Authorising or modifying the cash return
  • Authorising changes to the Management Agreement
 

Investors provide their Contribution by:

  • Proposing areas to research
  • Suggesting specific acquisition targets
  • Proposing candidates for roles
  • Suggesting product or customer opportunities for subsidiaries
  • Proposing solutions or changes for subsidiaries
 

Typical Communications from the Managers are:

  • Quarterly Financials from each subsidiary
  • Papers for Investor Meetings
  • Actions from Investor Meetings
  • Board Reports from subsidiaries
  • Written reports from Independent Directors
  • Invitations to attend events at the subsidiaries
  • Investor Bulletins (any other news of note)
  • Copies of new product catalogues
  • Copies of patent applications
 
Potential Investors who have signed an NDA can see examples of recent Investor Communications.