Overview

LCW Private Equity has made a number of principal investments, both individually and as part of investment syndicates or funds which it manages. Investments of this nature are a core component of LCW Private Equity's business.

In all of its investment activities, LCW Private Equity adheres to a strong investment philosophy.

Investment Philosophy

The fundamental assets to be deployed by an investment firm are money and skilled partnering. Money alone is a commodity. In seeking to obtain globally competitive returns from its investments, LCW Private Equity recognises that as a provider of money alone its targeted returns would often be considered high cost by potential investee companies relative to public market alternatives. This is particularly so given that LCW Private Equity insists that returns be compelling on a risk-adjusted basis.

LCW Private Equity believes its approach is differentiated and value-adding in four key ways:

• Risk Evaluation and Management
  The relevant types of risk for an investment portfolio are financial, geographical, technological, or operational. Operational risks include those associated with new product introduction, management change, operational leverage or integration of an acquisition. The challenge for a professional investor is to use selection, structuring, negotiation, and strategic and operational support skills to generate significantly greater amounts of return for an amount of incremental risk that is actively understood, managed and mitigated.
  
• Timing
  In secondary capital markets like Australia and South-East Asia, dislocations in capital markets tend to occur more frequently than in the more developed capital markets of the US and Europe. These often give rise to compelling buying (and selling) opportunities. It is important for a professional investor to take advantage of them. LCW Private Equity has a strong focus on market and investment fundamentals in preference to fashion, with a view to capitalising on value gaps between the two.
  
• Structural Partnering Advantage
  LCW Private Equity seeks to offer potential investee companies specialised value in order to increase the likelihood of being a sole or preferred provider of capital. It believes it can do this through focus, personal networks, proven processes, independence, intellect, attitude and entrepreneurship.
  
• Geographic Competitive Advantage
  Globalisation has promoted the view that specialisation needs to follow industry focus. By contrast, the experience of capital providers in markets like Australia and South-East Asia is that much of the excess returns generated are as a result of a local network of relationships and knowledge of the micro-economy. The personal network can often create opportunities for better investment returns than a global top down perspective on an industry, even if the industry is an attractive one. In this regard, reputation, although intangible, is key to competitive advantage. A good reputation in a small market will generate a large amount of potential investment opportunities relative to the size of the company. LCW Private Equity believes that its professionals have strong reputations for skill, insight, judgement, integrity and moneymaking in LCW Private Equity's target markets.