Our heritage as an investor makes our approach different to our competitors. We are investors, not allocators and have patiently invested capital across market cycles to deliver superior performance.
We believe that private equity, when implemented with an operationally focused strategy, can deliver consistent outperformance over listed equities across market cycles. We look for returns driven by operational excellence, and believe that private ownership can provide a more nurturing environment in which to build, grow and improve companies. This approach, in its essence, seeks to connect capital with management skill and alignment in a supportive environment.
1. We target markets, sectors and geographies that are supportive of private equity
We invest in deep markets with a high quality of opportunity. This allows us to be selective.
2. We focus on company building rather than leverage
Private ownership can provide a more nurturing environment in which to build, grow and improve companies. Smaller companies, supported by secular growth and underpinned by long-term themes, generally offer greater alpha generation.
We prefer sustainable capital structures and do not rely on financial engineering for returns.
3. We look for thematic tailwinds
We look for growth that is not reliant on economic or financial market cycles. By understanding long-term themes across sectors and regions, we can identify the long-term drivers of growth and returns that are independent of short term market movements.
4. We access high quality manager relationships
We have been rewarded by making concentrated investments alongside global, best-in-class managers. While we are large enough to be important partners to these managers, we are small enough to be selective. Unlike many of our global peers, we are not forced to compromise on manager quality to meet our clients’ investment appetite.
5. Adopting a sustainable, holistic approach to investing, that incorporates ESG as a value driver.
We believe company improvement is at the core of private equity investing and, as a result, private equity is uniquely positioned to have a positive impact on Environmental, Social and Governance (ESG) outcomes. Done well, pro-active ESG management can be a material and positive driver of returns.
1NAV and unfunded commitments as at 30 June 2018, inclusive of mandates for which GPC does not have responsibility for investment decisions.