The Fund will leverage the extensive corporate network of its principals, managers and investors to find and evaluate potential investment opportunities in unlisted small to medium sized enterprises. Such targets will typically possess one or more of the following attributes:
A strong, incentivised management team whose interests are directly aligned with shareholders.
Exposure to an industry with favourable medium to long term fundamentals.
Operations in an industry with high barriers to entry and / or possession of a strong competitive advantage within an industry.
Clear and defined exit strategy for shareholders - “invest to divest”.
Robust cash generation capability, as defined by Catapult’s proprietary cash generation metrics.
Catapult’s focused approach for private equity investment revolves around the follow key principles:
Extremely strong focus on management capability.
Superior alignment of interest between investors and managers of investee companies.
Not infecting the company with “PE Disease” – an overly of officious and uncoordinated control of the investee company.
Differentiated deal flow network to typical private equity funds driven by the Catapult Partners’ advisory business and the extensive network of its investment committee and investor base.
Rigorous approach to capital allocation.
Partner with proven entrepreneurs, but only in their proven field. Do not follow a successful entrepreneur into a venture outside their core expertise.
Be patient. Do not chase deals.
Invest with full information. Although formal due diligence is necessary, a close and aligned relationship with key management will often reveal more insightful information.