We believe in human capital and the transformative potential of talented operating executives and highly motivated employees company-wide. Our investment strategy centers on the ability of our experienced Operating Partners to drive fundamental improvement in the businesses we acquire. We invest in companies only when our Operating Partners, who serve either as active board members or as part of the senior management team, can develop clear and achievable plans for increasing revenues, improving profits, and raising returns on invested capital. We understand the powerful effect outstanding leadership has on employees throughout an organization. Business transformations are an all-hands-on effort, and we recognize the importance of building a winning and supportive culture throughout an organization.

Our investors expect us to achieve exceptional returns over a long-term investment horizon, not churn our investments for short-term gains. We understand that real operational transformation takes time, and we back managers patiently as they do the hard work necessary to build great businesses and create fundamental enterprise value.

We have an abiding faith that focused hard work can overcome many business challenges and that tremendous opportunity can be found in temporarily out-of-favor industry sectors. As a result of our Operating Partner resources and patient investment perspective, we are particularly well-suited to invest in complex situations involving fundamentally sound companies with short-term business problems, business cycle challenges, capital structure limitations, or management transition issues.

We seek to invest when the ability to drive value creation is heavily weighted toward factors we can control. Given the deep experience of our Operating Partners, such factors typically involve company-specific operational challenges we can address aggressively and with a high probability of success. This orientation has driven superior returns for our investors, both on an absolute basis and relative to the risk dynamics of our investments.

We value our relationships and strive to work in a constructive, straightforward manner with the highest level of integrity. Consistent with the values of our firm’s principals, we believe that working in a respectful and collaborative way with management teams, employees, investors, lenders, intermediaries, and co-owners of our businesses is a critical element of building lasting enterprise value.