The key characteristics of Actuity’s approach to investment are set out below:
| Alignment of interest and objectives – shareholders | Actuity invests through a specific syndicate established for each investment. In private companies we establish a Shareholders’ Agreement on objectives, governance and decision making.This ensures clarity and alignment of objectives at the outset of each investment between our investors and the other stakeholders in the business on investment strategy, objectives and time frame. |
| Alignment of interest and objectives – management | We establish a Long Term Incentive (LTI) scheme for key management personnel at the commencement of the investment which is tied directly to achievement of agreed operational and financial objectives and growth in shareholder value. This ensures management and shareholders are focused on achieving the same objectives. |
| Investors and managers | We manage investments for our investors, and our senior executives are also investors in each syndicate that we manage. |
| Flexibility – private and public companies and don’t require control | We are flexible on the types of businesses in which we can invest. We can draw on different investors as appropriate for each investment opportunity. We will consider investments in both public and private companies and in both minority and majority equity positions. |
| Focus on growth and prudent use of debt | We focus on increasing the value of a business. We do this through the commitment of capital and our expertise to increase revenue, profit, cash flow and operational performance. This includes both organic growth and strategic mergers and acquisitions. We use debt conservatively as this is a key factor in managing the risks of growth. |
| Partnership | We must have a true partnership with all continuing stakeholders (shareholders, management and staff) in any business we invest in. |