Investment philosophy

As entrepreneurs and successful businesspeople we invest in companies where we see an attractive valuation, competitive advantage and market opportunity, and where our involvement will build significant value.

We invest for long-term growth

We are long-term growth investors – with no fixed investment time horizons – and significant funding available of permanent capital. As successful entrepreneurs, we can afford to invest for the long-term. We know that building a better performing business takes determination. We are disciplined when it comes to the execution of strategy. We enter investments with a view to the long term, but if the right opportunity to realise value arose, we would prudently consider it, if conditions were right.

We make large-scale investments in sectors we know well

We invest internationally, at scale, in the technology, telecoms, energy, healthcare and retail sectors, where we have unrivalled expertise, and believe we can generate long-term sustainable growth. We leverage the insights we gain from our investments in private equity to build expertise in new sectors. If we think a sector is attractive, and can be grown beyond the size and time horizon of private equity, we will recruit renowned industry leaders to work in partnership with us to invest at scale. As we grow, we are diversifying our portfolio and investing globally in new sectors.

We proactively manage our holdings

We are investing our own capital in companies where we believe our sector experience, strategic and geographic expertise will improve performance. We like to understand how businesses work. We want to know their structure, skills, processes and the basis of their competitive strengths. We look at everything with fresh eyes, always asking what works and what doesn’t. Our specialist teams then work actively with the management of the companies in which we invest by providing strategic input, managing performance, and building competitive teams.

We target persistent value creation

We focus on metrics that are critical to a company’s persistent value creation rather than quarterly results alone. We build value through entry and then the proactive management of our holdings and companies. We focus on creating long-term value and on operational excellence. Our investment returns are generated through dividend income, as well as long-term capital growth.

We are committed to best governance practice

L1 is committed to the highest standards of governance based on the requirements set for public companies, including transparent financial reporting. The corporate structure of L1 has been carefully designed so that investment decisions are scrutinised thoroughly. To scrutinise our investment teams’ recommendations and to challenge our assumptions, we have recruited sector investment advisory boards consisting of internationally respected chief executives and entrepreneurs. Each advisory board provides advice on whether or not to proceed with a particular opportunity in its sector. The advisory boards play an essential role in our investment governance process.