We raise long-term capital from a wide range of investors to buy and transform businesses in order to create value for our stakeholders.
Driven by Macro Themes
Our macro view requires a fundamental understanding of the impact of long-term economic, political, and social trends on regions and sectors, which reveal investable opportunities.
The “metabolic rate” of the economy is also accelerating, with industry dynamics evolving faster than ever and profit pools shifting across value chains in many industries, thanks to unprecedented technological innovations.
- Drives highly proprietary deal flows.
- Helps to discover overlooked opportunities.
- Find new solutions to existing problems, or
- Look for more profitable approaches to running businesses.
Partner with Experienced Owners and Management
We mitigate risk with greater understanding of the operational issues, drawing on a wider pool of technical expertise, experience, skills, labour and networks.
- By partnering with experienced management as co-owners of the business the expectation is that returns of 25% per annum can be achieved.
- On every investment we partner with either the incumbent or a new management team.
- We partner with experienced owners and management who have a successful track record of changing and transforming businesses.
- Our approach consists of agreed objectives, and mutual trust and shared economics.
Mid-market Focus
We seek to identify potential in medium-sized companies with attractive value creation potential.
- In the area of expansion capital and small to mid-market buyouts in Australia,and/or China.
- Offers a greater number of investment opportunities and generally experience less competition for funding than many other areas.
- Smaller companies are able to grow more rapidly than their larger counterparts and is a key source of innovation.
- Generally small to medium size companies are more willing to except new ideas and change than larger more bureaucratic companies.
Alignment of Interests
Everyone has one goal – To ensure our portfolio businesses are as strong as they can be.
- When an investment succeeds, all parties benefit. When an investment fails, all parties lose. This is a powerful motivator for executives and management and portfolio company management to work in tandem to create value for our investors.
- Executives and management invest their own money alongside that of the investors so their personal, professional and financial success is tied to the success of our portfolio businesses.
- Similarly, the way the management teams in our businesses are compensated is also based on the long-term success of each business.
- We want management to hold a meaningful equity investment in a company. They tend to act more like long term owners than short term managers and are incentivised to make decisions that enhance the company’s value into the long term.
We are long-term investors who succeed only when all the businesses in our portfolio succeed.
As an investor in our private equity funds, we will prosper along with our investors by developing and growing successful businesses.
Transforming Strategy
Our role is to guide companies through a period of transformation that strengthens the core business, and then assist the transition to a natural longer term owner.
- We look for opportunities others don’t see.
- A new strategy will frequently be designed to make the most of long-term macro trends or a theme we have identified.
- We use a highly disciplined and analytical approach to evaluating investment opportunities – analysing a company’s financial performance in the context of its market position, industry dynamics and competition.
- It may involve implementing a new business model, repositioning a business within its industry, growing it by acquisition or diversifying its markets.
Invest In Growth – Organic, Merger and Acquisitions
Our investment focus is on high growth companies and sectors, or in industries that are undergoing structural change or that lend themselves to consolidation.
Transformation through mergers and acquisitions enables:
- Expansion from within a business by expanding the range of products and/or locations.
- scale and capability of a business and consolidate and improve its position within its industry
to improve efficiency and performance. - Reduce cost.
Throughout the course of our investment, we work together with the management teams to maximise the long-term value of our portfolio businesses.
Supportive Management Approach
Our role is to accelerate and support the senior management teams of these businesses in reaching their aspirational targets and goals.
- Our knowledge base and experience in the market allows us to quickly provide timely support and work effectively with management teams as they develop and implement business plans.
- We provide advice and assistance to our portfolio companies on acquisitions, capital restructuring, growth plans which leverage competitive advantage, and strategies for improving operating earnings.
- Plans and strategies are constantly re-addressed to address a changing market.
Hampton Capital
Helping innovative companies realise their growth potential