How we work
Charterhouse has a highly selective approach to investment. Our small portfolio of investments allows us to work closely in support of management to maximise value, typically over a three to five year period.
We typically look for the following features in portfolio companies:
- High quality businesses with a proven record of profit growth and cash generation.
- Strong growth characteristics, good defensive strengths and usually with market leading positions.
- European headquartered, although frequently operating on a global basis.
- We invest in most industrial and commercial sectors with a particular interest in service companies.
- Companies which are worth between €250 million and €2.0 billion in enterprise value.
Partnering with Management
Partnering with management is key to the Charterhouse investment philosophy. In any investment we make we expect to be the incumbent management's chosen investor. Management teams are co-owners of the business, with significant equity in each transaction. We aim to provide management with the incentive and the opportunity to deliver outstanding performance.
Each business plan is jointly agreed and we do not impose our own plans or operating partners on management. We help managers deliver their growth plans through active participation with each portfolio company, formally with representation on board of directors and through more informal interaction as appropriate.
Our approach is flexible, providing full strategic support and involvement in all major decisions, whilst leaving day to day operational issues to the management team itself. Typical Charterhouse initiatives include strategy definition, acquisitions and disposal and arranging optimal finance.
The same Charterhouse team members work with management throughout the entire investment lifecycle, ensuring continuity and consistency of our interactions.
With its long held strategy of acquiring well managed high quality businesses, Charterhouse is well aware that the long term financial success of its portfolio companies can be positively influenced by robust management of environmental, social and governance (ESG) opportunities and risks. Charterhouse has recently formalised its approach to ESG matters and has become a signatory to the Principles for Responsible Investment (PRI).
Whilst Charterhouse recognises that the majority of value enhancement opportunities lie with its fund portfolio companies, Charterhouse seeks to reduce its own environmental impact and contributes to society through discrete philanthropic programmes including the Charterhouse Charitable Trust (registered Charity no. 210894).