The Highcrest investment philosophy is centered on partnering with great management teams and solid businesses that have the potential to scale into strong market leaders. We take a disciplined approach in our investment decisions, observing recurring themes and guiding principles that we have developed through our collective experience and proprietary market research processes.
We ensure that the companies we invest in have the essential building blocks for steady growth and value creation, based on long-term industry and company fundamentals. With each investment, we roll up our sleeves to provide the essential resources to help companies reach their growth goals.
We are constantly developing and updating several high-level themes that drive our investment decisions. They act as guideposts as we evaluate different industries and companies.
We consistently refresh our knowledge base by reaching out and interacting with different industry players both within and outside our network. In addition, our Shared Services Group allows us to gather valuable market intelligence from multiple viewpoints of high-level industry leaders and down to hundreds of customers they serve.
Coupled with our thematic approach, we target companies that have solid growth potential based on the following building blocks:
Attractive Industry Fundamentals. We identify industries that are rapidly growing (or have potential) and have niche segments that are highly fragmented. The type of solutions provided by these businesses should have a significant value proposition to customers.
Critical Company Fundamentals. We focus on companies with a strong differentiation of solutions and highly predictable cash flow model. They have both a steady recurring revenue base and a strong potential for growth. These businesses have stable margins and are asset-lite.
Once we have ensured that companies have the basic building blocks, we build upon their core competencies and develop a solid foundation for long-term growth.
For example, with our investments in businesses owned by entrepreneurs and families, we focus on building upon founders’ legacies. We try to balance maintaining a similar culture of entrepreneurship while providing the necessary resources to help businesses reach the next levels of growth.
Highcrest works closely with companies to help them maximize their value by providing the resources and value-added services through our Shared Services Group. We understand that this process of building lasting value with companies takes time and requires a long-term and patient approach.