Strategy 06 of 6
Strategic Holdings
Controlling or significant long-term stakes in operating businesses that we intend to own for decades.
- Typical commitment
- US$20 million to US$150 million
- Holding period
- Permanent
- Geographies
- Hong Kong, Greater China and Southeast Asia
Overview
The strategy
Instruments
- Majority and significant-minority equity
- Shareholder loans for expansion and acquisition
- Succession and partial-liquidity structures for founders
A small number of our investments are permanent. These are operating businesses in which we hold control or a significant, board-level position, and which we run on a horizon measured in decades rather than years.
We are not a private equity firm. There is no requirement to sell and no pressure to lever the business for a near-term distribution. We support management with capital for expansion, acquisition and succession, and we expect good stewardship in return.
Companies join this group through acquisition, through growth investments that mature into long-term partnerships, or through founders who want a permanent home for the business they have built.
What we look for
Criteria
- Businesses with a reason to exist in twenty years' time
- Management teams who want to stay and build
- Sustainable cash generation and modest capital intensity
- Cultures we would be proud to be associated with
What we avoid
Exclusions
- Turnarounds that depend on replacing the entire management team
- Businesses reliant on regulatory arbitrage
- Situations that require high financial leverage to make the return work
Beyond capital
What we bring to the table.
Capital is only part of what an investor brings. These are the things that matter most to our partners in this strategy.
- 01
A permanent, aligned shareholder
- 02
Capital for growth with no mandated exit
- 03
Governance, finance and strategic support from a senior team
Related sectors
Where this strategy is most active.
Healthcare & Life Sciences
Healthcare services, medical devices, diagnostics and commercial-stage life sciences in Greater China and Southeast Asia.
SectorConsumer & Brands
Branded consumer businesses, premium food and beverage, and retail formats with pricing power and loyal customers.
SectorIndustrials & Advanced Manufacturing
Precision manufacturing, industrial components, automation and supply-chain businesses serving regional and global customers.
SectorBusiness & Professional Services
Recurring-revenue service businesses with high customer retention, including outsourcing, compliance, education and testing.
SectorTalk 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.