| Capricorn has developed a rigorous approach to identifying and making investments that involves extensive due diligence, strong expertise in transaction structuring and financing, a focus on strategic and operational improvements, and the creation of partnerships. |
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Every transaction is subjected to extensive analysis and discussion. Only a handful or potential transaction opportunities ultimately become portfolio investments.
The core investment principles of our private equity business are: |
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| FUNDAMENTAL VALUE |
| We seek to identify cash out-of-favour, under-appreciated industries, or companies with stable cash flows that can be purchased at the right price. We identify developing industry trends in order to take advantage of them before they become widely appreciated and to pursue opportunities for restructuring. |
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| PRO-ACTIVE INVESTMENT APPROACH |
| We look to play an active role in all portfolio investments providing Board supervision and value-added strategic and operational support. Our team brings a wealth of capabilities to our investments. We work closely with the managers of portfolio companies to ensure value unlock and to determine the optimal timing and structure for exiting an investment. |
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| PARTNERSHIP |
| In all cases, Capricorn executes friendly transactions with the full support of the company that we look to invest in. We work closely with management to develop operating plans that support research and development, capital spending, and future acquisitions. We also understand that managers need a level of operational autonomy. The managers of our portfolio companies own the results of their decisions. |
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| PREFERENCE FOR EXCLUSIVITY |
| We focus on the development of transactions that are exclusive to Capricorn. Our strong relationships and our partnership approach with corporates, BEE parties, and investment banks allow us access to opportunities that are proprietary to Capricorn. |
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| ALIGNMENT OF INTERESTS |
| We recognise the importance of aligning Capricorn’s interests with those of our investors. Capricorn employees own the majority of the equity of the firm and the employees have invested substantial amounts of their own capital into the private equity investments. On each portfolio investment we partner with senior managers, who also invest their own capital in the business.
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