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.
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.
Roadmaps Detailed proprietary research on countries, industries and subsectors. Integrate sustainability factors to identify characteristics of what we view as high-quality businesses.
Summits Generation-hosted gatherings of external experts brought together to help inform our thinking on complex topics. Focus on how sustainability trends are shaping sectors and systems.
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.
- Barriers to entry: “the moat”
- Attractiveness of "the castle"
- Critical sustainability factors
- Pricing power
- Business stability
- Degree of difficulty
- Long-term orientation
- Culture and mission
- Human capital management
- Track record
- Capital allocation
- Corporate governance