Business model
Our thematic approach
We adopt a thematic approach to origination and portfolio construction, backing businesses that benefit from structural trends which can support long-term sustainable growth.
Our investment approach
Careful portfolio construction
We approach portfolio construction with great care, with a focus on resilience across market cycles, and target sectors and regions where we have deep expertise, strong networks, and a proven track record. Our strategy remains flexible, adapting to market shifts, regulatory changes, and broader societal and environmental trends. We screen investment opportunities against our Responsible Investment policy and embed an assessment of sustainability risks and opportunities across our investment and portfolio management processes. Our Private Equity and Infrastructure teams invest in sectors that are supported by long-term structural growth trends.
Active asset management
We engage with portfolio companies’ management teams to manage risks and invest in initiatives that support long-term growth. We generally have majority stakes in our core portfolio companies and are represented on their boards. We therefore have the influence to drive long-term, sustainable growth in our portfolio.
For each investment within our Private Equity and Infrastructure portfolios, exit strategies are reviewed at regular intervals throughout our holding period. Potential exit routes may include a trade sale, IPO, or acquisition by another investment firm. The timing of any exit is determined by the company’s performance against its original investment plan, its growth trajectory, and prevailing market conditions. For long-term holdings, the exit horizon may be extended to maximise value creation for our shareholders.
Our growth enablers
Global network
We have had local teams on the ground in the UK, continental Europe and the US for many decades, which have built strong networks within their local business communities, and have enabled our origination, value creation and decision making.
Our people
The recruitment, development and retention of a capable team is fundamental to our success.
Our strong values and institutional culture
We promote a strong culture of integrity among our employees and embed that culture in our policies and processes.
Our brand and reputation
As an investment company with a history of over 80-years, our brand strength and long-term approach underpin our reputation as a responsible investor and business.
How we create value
Who benefits
Shareholders
Our model is capable of delivering mid-teen returns to shareholders through the investment cycle.
Our people
Our people are our most important resource. We foster the professional development and wellbeing of our employees.
Portfolio companies
We work in close partnership with our portfolio companies to provide expertise and support, enabling them to grow sustainably and to contribute to the communities in which they operate.
