Long-Term Equity

Long-term Equity is designed for entrepreneurial, private companies which are seeking an ownership structure and alignment with partner investors that support their long-term, sustainable performance.

Investment Approach

We invest in sustainable companies which are likely to be sufficiently established that we believe they could be publicly listed. However, their management teams would prefer to be supported by private investors with a long-term perspective that aligns with their ambitions.

Identifying Opportunities

Our Long-term Equity team draws on Generation’s research, experience and relationships to help identify companies that could be suited to long-term, sustainable private investments.

We are interested in understanding the forces shaping company profitability and value. Our focus is on business infrastructure companies that we believe can play a part in driving sustainability in their industries. Analysis will focus on assessing long-term embedded drivers of change, understanding externalities and considering all stakeholders with a goal of achieving better long-term alignment than exists with other forms of company ownership.

Once we have identified companies that could be suitable candidates for our Long-term Equity strategy, we apply Generation’s investment methodology to deepen our conviction on whether they are high-quality companies that we believe will thrive in the long-term. We seek to invest in sustainable businesses providing products or services consistent with a low-carbon, prosperous, equitable, healthy and safe society.

The search for quality is at the core of our investment analysis and diligence. We integrate fundamental analysis and sustainability factors to better assess the quality of the businesses and management teams. We believe this helps us to have differentiated discussions on how we can support their ambitions and long-term, sustainable value creation in the companies they lead.

Businesses Quality Assessment
  • Barriers to entry: “the moat”
  • Attractiveness of "the castle"
  • Critical sustainability factors
  • Pricing power
  • Business stability
  • Ecosystem
  • Degree of difficulty
Management Quality Assessment
  • Long-term orientation
  • Culture and mission
  • Alignment
  • Human capital management
  • Track record
  • Capital allocation
  • Corporate governance

Development

We established our Long-term Equity investment strategy in 2018 with an investment in FNZ, a sustainable global platform-as-a-service provider to the investment sector, in partnership with Caisse de dépôt et placement du Québec (CDPQ), a Canadian institutional investor. In 2020 Temasek, a Singaporean institutional investor, also committed to invest in the FNZ partnership.