Our Investment Strategy
We are platform-focused investors and operators. For each of our platforms, we tightly manage our portfolio and monitor risk. Our investment approach involves rigorous screening, due diligence, transacting, and approval processes. We apply intense focus to value creation, with different approaches depending on the platform. We maintain full alignment and integrated communication between our team, platforms, operating and investment partners.
PLATFORM-FOCUSED INVESTING WITH POWERFUL SOCIAL CAPITAL
We focus on building world-class operating platforms that benefit from strong economic tailwinds and fit with our existing capability set within Safanad. We create an ecosystem of highly-skilled operating teams within each portfolio company to execute. These teams are supported with input from leading, independent industry professionals.
As a firm, we bring to bear Safanad’s expertise in capital structuring and formation to support our platform teams and measure value creation through the growth in asset value, cash generation, and MOIC as a long-term investor.
TIGHTLY MANAGE OUR PORTFOLIO AND MONITOR RISK
Our strong Operating Group and platform teams provide unique insight into industry and platform-level dynamics, who are then supported by a deeply involved Investment and Senior Partner team. Tight connectivity with the Safanad platform and corporate infrastructure ensures regular and timely reporting and forecasting.
Within Safanad, we have multiple forums at the Board, Investment Committee, and Corporate Executive Committee level to manage and monitor our portfolio. We continually evaluate macroeconomic, sector, and platform / asset level risk.
RIGOROUS SCREENING, DUE DILIGENCE, TRANSACTING, AND APPROVAL PROCESS
We screen opportunities based on market dynamics, connectivity with our existing portfolio, and interest from our ecosystem partners. Our due diligence is part of a standard process including a market assessment, financial underwriting, and commercial, technical, legal, commercial, and reputational diligence. We structure transactions based on the right cost and tenor of capital for the opportunity. Opportunities are approved through a rigorous Investment Committee process that includes highly experienced investment and industry professionals with targeted participation from technical expertise and operating partners.
FOCUSED APPROACH TO VALUE CREATION
We define a disciplined and methodological value-creation strategy for each platform, depending on its industry dynamics. This includes looking at intersectional opportunities for growth in each platform as we place technological enhancement front and center in each company; we do not consider ourselves bound by traditional sector silos. Growth can come from organic growth or accretive acquisitions, though we also look at incremental and adjacent opportunities.
FULL ALIGNMENT BETWEEN TEAM, PLATFORM, AND INVESTMENT PARTNERS
Our team is compensated based on the overall performance of the firm’s invested capital, ensuring everyone participates both in the success and risk of our different platforms. In building each of our platforms, we ensure that the entire ecosystem of operating teams is incentive-aligned with all capital providers.