Personal Characteristics

We chose to found a private equity firm because the private equity model aligns our financial remuneration with our shareholders’ interest and provides the proper incentives to increase the long-term intrinsic value of a business.  We chose a 7-10 year timeframe because time is a strong ally for a highly talented management team that is interested in undertaking profitable growth initiatives for the welfare of our shareholders.  We explain in greater detail how are actions and manner are in agreement with our interest. values and basic nature.    

We want an incentive compensation system and investment timeframe that is aligned with our management principles and interests.  When significant long-term value is created for our shareholders, we want to be fairly rewarded as well.  We are not shy about expressing our interest in making money.  We believe the surest way to create outstanding shareholder returns is by successfully completing development initiatives that increase the intrinsic value of the business.  The fairest way to reward this type of effort is equity compensation because these initiatives take years to complete, require upfront investment that is justified by high expected returns and tend to progress in unpredictable spurts. 

We feel strongly about a 7-10 year investment timeframe.  In accordance with our belief that businesses earn the right to grow, we initially focus exclusively superb execution of the core business.  As the organization demonstrates the ability to assume additional responsibility and a deeper understanding of the profitable growth opportunities is developed, we are comfortable undertaking profitable growth initiatives.  A longer investment timeframe can increase the number of attractive projects.  Successful completion of projects can beget additional attractive opportunities as long as time is not an issue.  For instance, if we successfully resolve a major issue for a customer, the customer may have additional opportunities to share with us.  Because some businesses don’t focus on longer-term initiatives, some of the most attractive opportunities can be longer-term in nature. 

We describe our primary leadership principles.  We are grounded in reality.  We are critical thinkers who are experienced in facilitating processes to set the direction for the business.  We agree with the statement commonly in the popular business press that leadership is principally about deciding what to do and management about how to do so. But, this is not the only purpose of leadership.  We place significant importance of each employee to the success of our business; we want their full involvement.  The basis for our humility is our self esteem and awareness of our limitations; we want our colleagues to harbor similar positive thoughts and feelings about themselves.  We work to build a culture that values initiative, teamwork and innovation; building a strong culture is the result of day in, day out efforts, not a public relations campaign.  We are passionate and enthusiastic individuals; this energy can be infectious in an organization.  Without the emotional commitment, excellence is only an ideal.  We take full advantage of all opportunities to have fun. 

We emphasize how truth influences our thoughts and actions.  We measure our operating performance against world-class standards regulary so we can accurately assess our results and protect against the human tendency to "sugar-coat" performance.   We value honesty, integrity, genuineness and humility.  These qualites are the basis for building trustworthy, long-term relationships.  We recognize our personal limitations.  We can't achieve our goals without the deep commitment of all employees.  We surround ourselves with highly competent and complementary people who aren't affraid to speak our mind.  We constantly communicate with employees and keep an "open door" so we have the benefit of their wisdom.  When making decisions are made, we rely on facts, reason and prudent conservatism, for we are not soothsayers.  We focus the business on what is most critical for success because the time, effort and resources necessary to achieve excellence mean that only a few things can be done exceptionally well.  We build a culture that celebrates diversity to fight against the human tendency of confornmance.  Confornmance stifles productivity, initiative and creativity.        

In closing, our business model and ambitions are in accordance with our nature.  We feel most alive when we are leading, developing, connecting and doing what interests us most.  This is what makes our lives matter.