Investment philosophy
Search for companies with first class management and were we andthe key employees share the same understanding of the value creation process in the company. - Solve the potential asymmetry between management and owners –Make management behave like owners.
- Invest early in a market cycle (often before a sector is discovered).
- Active owners with focus on three main issues:
- Operational focus: Develop KPI’s, monitor and work with improvement at all levels
- Improve reporting: Corporate governance and organizational structure to enable the company to be listed on a stock exchange within 2-3 years.
- Growth focus: Grow the business organically and by M&A
- Optimal financial structure: Use debt to leverage on performance.
- Work with partners with complementary skills and experience.
Partnership Ferncliff has established partnerships in a number of areas during the last years.
The typical Ferncliff share in direct investments is between 30 and 60 percent. The remaining shares are owned by the public or by partners and co-investors. When tructuring a deal, Ferncliff TIH aims at putting together a complementary owner structure and board composition that can effectively run the company. | 
