Investment Philosophy
01
Managing for real long-term value
While a sustainable business is not always a great business, a great business is always sustainable. ​
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​​Companies that recognize global challenges as opportunities for innovation and growth, with business models capable of mitigating increasing systemic risks are the businesses of the future.​
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Long-term value is based on the cash a company can generate for its owners over its lifetime. These cash flows ultimately depend on the strength of the company’s business model and strategy.
We do not really care about ESG scores or ratings, as they often have little to do with the fundamentals of building a truly sustainable business.
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We do not manage for specific outcomes, but we expect sustainable businesses, by design, to naturally generate positive externalities for society and the environment.​
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Our investment horizon is exceptionally long because true value creation takes time. We think in decades not years. Our preferred timeline to exit a company is never.
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02
The primacy of risk control
Superior returns can only be sustained by controlling risk effectively. However, we do not manage risk by simply integrating ESG-factors into our investment decisions.
Our approach centers on protecting the downside by investing in a portfolio of companies with sound fundamentals that are well on the path to becoming resilient, sustainable organizations, as well as those that act, show, and prove the start of their sustainable transition.
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By safeguarding against losses, we aim to create a foundation where compounding can thrive, allowing the upside to take care of itself.
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03
Active & Effective Engagement
We go far beyond ESG as a mere overlay and are skeptical of shortcuts. We help our portfolio companies achieve meaningful improvements and sustainable growth by supporting their adaptation to evolving environmental, social, and economic conditions.
We empower companies without unnecessary interference. Trust, freedom and responsibility are the key pillars in how we operate.
We offer guidance and support where and when it matters most. We invest in companies because we believe in them, not because we want to reengineer them or dictate how they should run their business.