Our way of working
Our goal is to help our companies maintain or achieve best- in-class positions in their respective industries and our team works actively with the boards and management teams of our companies to achieve organic and non-organic growth.
We look for companies with strong market positions in attractive industry niches with long-term growth. The companies should have healthy profitability and cash flow generation, and they should be agile and resilient, with strong corporate cultures.
We typically contribute USD 200-700 m. in equity and use modest leverage, around 3-4x EBITDA. We aim to exceed 90 percent ownership, with management as co-owners.
Best-in-class companies
We believe in bench-marking against the very best competitors and other relevant companies as a basis for identifying improvement potential for our companies in terms of growth, profitability, efficiency and quality, as well as customer and employee satisfaction.
To become or remain best-in-class, companies must have the ability to invest in innovation, regardless of pressure from the market or other external forces. Through our financial strength, we allow our companies to make the right investment decisions – at the right time. Access to capital, in combination with sound ownership and governance, creates opportunities to invest for the long term.
Growth is a key value driver for us. New geographies, products and customers tend to be the best opportunities for creating value over time. Complementary acquisitions and expansion into adjacent areas are also possibilities. As we focus on the long-term development of our companies, we maintain their financial gearing at relatively moderate levels in order to provide strategic support and the financial capacity to pursue attractive investments.
Focusing on professional board work
We believe in creating value through engagement and active ownership and therefore work diligently through the boards of our companies. From our extensive network we recruit board members with solid industrial expertise, financial knowledge and experience leading international operations.
This network also includes former politicians and representatives of the academic world. Our goal is to create diverse and dynamic boards with members that have relevant competences and who have the time to be actively engaged; this is at the center of our ownership model.
We define and constantly refine value creation plans for each company, focusing on key strategic initiatives aimed at creating value over the next three to five years. While our ownership horizon is long term, we believe in also putting shorter-term plans in place to create a clear focus on execution.
Improving sustainability
We take a business-driven approach to sustainability as we believe this is a prerequisite for future-proofing our companies to become or remain best-in-class and stay competitive. We believe that companies that integrate sustainability in their operations and business decisions will be more successful and create more long-term value. Investor has a long tradition of acting as an engaged and responsible owner and company, and defines sustainability as the delivery of long-term value in economic, social and environmental terms.
Right people at the right place
Great companies are built by great people. It is our firm belief that leadership and individuals make all the difference.
This is why much of our work is focused on ensuring that the best possible people are appointed to the boards and management teams of our companies. A strong company culture is a key asset in all our companies.
