An investment company which holds minority positions in listed companies and acts as an engaged shareholder in those entities to drive maximum returns for all stakeholders.
OUR BUSINESS MODEL
The key principles driving VCP's
investment strategy include
Value investing A value investor with an appreciation that value is created at the point of buying, and this should be done significantly below intrinsic value.
Protection of capital There is more time spent upfront understanding the downside risk to each investment and having a substantial margin of safety between intrinsic value and share price. Returns are secondary to protection of permanent capital.
Undervalued businesses VCP invest in strong businesses that are undervalued, rather than targeting turnarounds. The business should function efficiently without VCP intervention.
Attractive business model VCP’s definition of an attractive business model includes factors such as strong brands, pricing power in chosen market usually through unique competitive advantages, an ability to improve operating margins strong management teams, healthy balance sheet, and strong cash flows.
Partnership Control is not critical for the VCP business model. We prefer partnership at a discount to control at a premium.
Alignment of stakeholder interests Alignment of interests with investors, shareholders and management. VCP founders and staff are significant investors in their own business, which provides a stable pool of permanent capital to match the investment horizon of investee companies.
VCP's portfolio include strategic investments in these strong businesses that are undervalued. VCP acts as an engaged shareholder and works collaboratively with the Board of Directors.