Investment Strategy
Acorn’s team members have historically applied specific business principles in private equity investments that have contributed to exceptional returns and consistent outperformance of most competitors. Acorn will apply similar principles to the investments of The Partnership.
These principles include:
- Allowing management of Portfolio Companies to acquire shareholding in the companies they manage.
This better aligns management to the goals of all the shareholders and also serves as the strongest motivation for
management to improve their business’s performance in the medium to long-term.
- Focusing on growing and profitable sectors.
- Investing in profitable enterprises that are operating in the growth sectors in South Africa allows for substantial
organic growth without the need to apply aggressive restructuring or cost-cutting policies to the current operations.
- Ensuring that strong, dynamic and innovative managers run the daily operations of the Portfolio Companies.
- Ensuring that a strong and proactive Board of Directors is able to provide insight and guidance to the managers.
- Focusing on businesses with significant scalability.
- This allows for exponential growth and exceptional rates of return for The Partnership.
- Being price sensitive and not entering into a transaction if the pricing is not right.