Investment Philosophy
Our Guiding Business Principles
Seven core principles drive our direction, business decisions and are our constitution in conducting business:
1. Long-Term Partnership
We view our investments as long-term commitments to business partners. The best investments allow us to be a business partner for many years, or ideally, indefinitely.
5. Prudent Use of Debt
ValorBridge Partners employs debt judiciously, with a preference to minimize its use. We will forgo investment opportunities rather than over-leverage our balance sheet. We believe our prudence enables a focus on the long-term trends that drive business value, rather than short-term swings in operations that could impair an equity holder.
2. Aligning of Interest
We believe incentives matter. We prefer managers of our investments to hold material ownership interest in their operations. This incents sound financial decisions that are in the best interest of owners.
4. Selective Diversification
ValorBridge’s goal is to grow a diversified group of businesses across our investment platforms – publicly traded companies, private holdings and direct operating companies. Where appropriate, we will leverage our current core holdings and operations into new, entrepreneurial ventures.
7. Responsibility and Leadership
We believe management matters. The leadership of each business venture plays a crucial role in a company’s overall success. As such, ValorBridge Partners intends to leverage our managers’ expertise, so that each business can function as a separate and stand-alone entity.
3. Maximizing Intrinsic Value
We measure success by the maximization of intrinsic value per share growth – this is for our overall enterprise, for operating companies and on a per-investment basis
6. Retention of Earnings
Our favorite investment opportunities are those where the business can retain earnings to invest in high incremental return on capital opportunities. Similarly, the excess capital our investments generate will be held by ValorBridge as retained earnings, to be redeployed in the form of debt or equity investments in new or existing ventures.
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