Investing our own capital
We invest from the balance sheet of Caledonia Investments plc. This gives us the freedom to be flexible in our structuring and to take a long-term view. Unlike private equity firms – whose funds have limited lifespans, restricting the time when investments must be made, grown and sold – we have no time limitations on our investments.
In every case, our financial goal is to achieve strong capital growth while generating a running yield for Caledonia and management alike. By targeting established, growing businesses with proven management teams, we are well positioned to meet that goal and deliver lasting value to both our partners and investment trust shareholders.
Delivering sustainable results
We work with growing, cash-generative businesses, collaborating with experienced management teams to boost the performance of companies that are already robust and resilient.
Our flexible, patient approach stretches beyond the short-term cycles and typical fundraising constraints of most private equity investors. This allows us to achieve sustained growth, and pick our moment to exit when we can ensure maximum value.
Sector-agnostic, we apply rigorous investment criteria to identify businesses with a profitable track record and the potential to grow strongly with our support.
Our ‘golden rules’ of investing see us target the following characteristics:
Robust market position and ‘reason to exist’
Consistent financial performance and profit delivery
Steady demand-led growth drivers
Established management team
EBITDA > £7m and EBITDA margin > 10%
Operating cash conversion > 70%