Our approach
We underwrite the downside, wait for the upside and never let the calendar make the decision.
We are not constrained by a fixed investment period, so we can afford to be more selective, more patient and, when it matters, faster than most institutional investors.
Philosophy
Investing as owners
We think of every investment, whether a listed share, a loan or a building, as ownership of a business or an asset. The question we ask is not whether the price will rise, but whether we would be content to own it for a decade at this price if we could never sell.
That framing rules out most of what the market offers on any given day. It leaves a small number of opportunities in which the quality of the business, the integrity of the people and the terms available combine to offer a return we can underwrite with confidence.
We are concentrated by design. A portfolio of businesses we understand thoroughly is, in our judgement, safer than a long list we know only from a spreadsheet, and it allows the senior team to remain genuinely engaged with every position.
“We would rather do nothing for a year than do something we do not understand.”
Finally, we hold ourselves to the standard of behaviour we expect from the companies we invest in. We negotiate hard but fairly, we honour our commitments, and we treat every counterparty as someone we expect to deal with again.
Process
From first meeting to ownership.
A documented process with a weekly investment committee. The steps are the same for a US$5 million credit facility and a US$100 million strategic acquisition; only the depth of the work changes.
- 01
Origination
Opportunities come from our own research, from founders and management teams we know, and from a network of sponsors, advisers and co-investors in Hong Kong and across the region. Every proposal is screened against our published criteria within ten business days.
- 02
Preliminary review
A two-person deal team prepares a short memorandum covering the business, the people, the structure and the principal risks. The investment committee then decides whether to commit resources to full diligence.
- 03
Diligence
Commercial, financial, legal and reputational diligence is led in-house and supported by external advisers where specialist input is required. We meet customers, suppliers and former employees, and we form our own view of the numbers.
- 04
Investment committee
The committee meets weekly. Approval requires a written recommendation, a downside case the firm can tolerate and the absence of any unresolved conflict. Any member may decline a proposal.
- 05
Structuring and execution
We negotiate directly and document conservatively. We prefer simple structures whose protections rest on governance and information rights rather than on complex economics.
- 06
Ownership
After completion, the deal team remains responsible for the investment. Every position is reviewed quarterly against its original thesis, and we engage with management as active, supportive owners.
- 07
Realisation or retention
Exits are driven by the thesis, not by the calendar. Many positions are held indefinitely. Where we do sell, we prefer an orderly process that leaves the business and its remaining shareholders in good standing.
Risk discipline
How we protect capital.
Preservation of capital is not a slogan. It is a set of rules that constrain what the investment committee may approve, and how positions are managed afterwards.
Downside first
Every memorandum presented to the investment committee contains a downside case built by the deal team on its own assumptions. If the firm cannot tolerate that case, the investment does not proceed.
No leverage at the firm level
The firm does not borrow to invest. Leverage exists only within individual real-asset holdings, where it is non-recourse and conservatively sized against contracted income.
Concentration limits
Limits by strategy, sector, geography and single counterparty are set by the investment committee and monitored by Finance. Breaches are reported immediately and resolved deliberately rather than mechanically.
Liquidity reserve
We hold enough liquidity to meet every outstanding commitment and to act in a dislocated market without selling assets. Being able to buy when others must sell is central to the strategy.
Thesis-based review
Every position is reviewed quarterly against the thesis in its original memorandum. A position is sold when the thesis is broken or fully realised, not because the calendar or the price has moved.
Reputation as a constraint
We decline investments that would be profitable but would compromise the firm's standing with counterparties, regulators or the communities in which we operate.
Time horizon
Patient by structure, fast by choice.
Why we can wait
There is no fixed investment period and no redemption window. Strategic holdings are held indefinitely. Listed positions are held until the thesis has played out. Real assets are underwritten on decades of income. When a portfolio company chooses to invest for the long term at the expense of near-term earnings, our response is to ask how we can help.
Why we can move quickly
The decision makers are in the room. The investment committee meets weekly, there are no external approvals and there is no committee in another time zone. Indicative terms within two to four weeks and completion within six to twelve is our normal pace, and we can be faster when a situation genuinely requires it.
Principles
The standards behind every decision.
Alignment with the people we back
We invest alongside founders, management teams and borrowers whose interests run in the same direction as ours. Where they do not, we would rather decline than structure around the problem.
Preservation before return
Every analysis begins with what could go wrong. If an investment cannot withstand our downside case, it does not proceed, however attractive the upside.
Concentration with conviction
We would rather own a small number of businesses we understand thoroughly than a long list we know only superficially. Every position has to matter.
Time is our advantage
We are not constrained by a fixed investment period, so we can hold for decades or act within days. We use both freedoms deliberately, and we never let the calendar make an investment decision.
Direct relationships
We invest in people as much as in businesses. Founders, management teams and borrowers deal directly with the people who make the decisions, and those relationships outlast any single transaction.
Conduct as capital
Our reputation is the asset that makes every other investment possible. We do not pursue returns that would put it at risk.
Talk to the people who make the decisions.
If you are a founder, owner or borrower looking for an aligned investor with a long horizon, we would like to hear from you.