Investment Strategy

Our Sectors

Our investment strategy is concentrated on our key sectors where we have deep expertise and are able to add real value to our partners.

These categories are broadly defined:

• Branded Consumer Products and Services
• Business Services and Supply Chain
• Fitness, Wellness and Healthy Living
• Gaming and Leisure
• Hospitality, Travel and Tourism

Branded Consumer Products and Services

Key Sector Themes:

• Tailwinds in Certain Niches – although overall growth is slow, certain key niches are growing rapidly

• Brands remain King – established brands are able to retain pricing power as supply commodities

Business Services and Supply Chain

Key Sector Themes:

• Large, Fragmented Industries – we seek hourglass shaped industry structures, with lots of customers, lots of suppliers and few intermediaries
• Outsourcing Trend Driving Growth – corporate and government outsourcing leading to increased opportunities
• Identify and Invest in Manufacturers of “Mission Critical” Components – required high quality and low unit cost leads to strong margins

Fitness, Wellness and Healthy Living

Key Sector Themes:

• Large, Fragmented Industry – no company with more than 15% market share
• Rapid Growth – strong industry tailwinds as the population becomes healthier; Millennial’s more likely to exercise than Baby Boomers
• Powerful Economic Structure – EFT dues from memberships create strong economic base; high free cash flow and strong margins

Gaming and Leisure

Key Sector Themes:

• Strong Recurring Revenues – structurally high margins and free cash flow conversion
• Structural Oligopolies – high barriers to entry created by enabling legislation, required background and probity checks
• Industry growing globally; mature in the USA – Bespoke focusing outside the USA for potential investments, other than lottery

Hospitality, Travel and Tourism

Key Sector Themes:

• Travel and Tourism is a Large and Fragmented Global Industry – per WTTC, travel and tourism accounts for c 10% of Global GDP; no company has more than 10-15% market share in its sub-market
• Strong Growth Profile – Travel and Tourism is growing at 5-10% depending on the country
• Millennial Focus on Experiences – per industry research, the Millennial consumer is more interested in experiences than products
• Powerful Industry Tailwinds – driven by globalization, rapidly increasing Middle Class in Asian countries now travelling