"Our goal is to generate superior risk-adjusted returns for our investors and to increase, or create, value in our portfolio companies. We expect to do this by making value added control investments."
Our firm includes investment professionals with extensive experience in private equity investing, government relations and working with and as senior management. We have a well deserved and hard-earned reputation for creative problem-solving among traditional private equity market participants, lenders and other banking professionals, and with unconventional sources of deal flow. We take controlling stakes, allowing us to tackle underlying issues. Mongolia Fund is a control equity investor. This does not mean that in all cases we must own 51% or more of the common equity of a business in which we invest. We are prepared to consider partnerships or structured arrangements which enable us to control our destiny, with regard both to the purchase or sale of a company’s securities and involvement with a company’s management team.We address underlying issues, improving cash flow and increasing value. Exit is typically via sale to strategic or financial buyers, or through an IPO.
WHAT MAKES US DIFFERENT
More than Capital. We are hands-on investors. We are typically the first institutional investor in our companies. We take an active role on portfolio company boards of directors and work closely with entrepreneurs on operational, leadership, strategic and financial issues. We prefer to be the lead investor in our companies and carefully select our syndicate partners.
Impact Philosophy: We purposely pursue a limited number of high-impact investments. This allows us to devote more resources, energy and time towards accelerating the development of each portfolio company. Each investment we make must have the potential to return a significant portion of the fund’s committed capital. To generate impact returns, we seek meaningful ownership positions in each portfolio company.
Thesis - Driven: Because of our deep sector knowledge and internal operating capabilities, we are thesis-driven. We proactively target market segments that we believe will be growth areas within our investment focus. We seek out opportunities where we can contribute our industry knowledge and expertise to build a large and successful enterprise.
Top - Down Analysis: Our top-down analysis identifies macro themes by evaluating global economic trends, monitoring government policy changes, socioeconomic trends, currencies and other items.
Country, Sector and Currency Trends: We travel the world to get the firsthand knowledge essential to our risk management framework. We monitor macro factors such as geopolitical developments and changing government policies, and micro factors such as the strategy and execution of company management.
Technical Analysis: We evaluate investment and sector performance on a best-to-worst basis for each week, month and quarter. This allows us to identify critical drivers that could lead to outperformance or underperformance over various time periods.Investment
Screens: We measure and compare companies using a range of metrics, including earnings-per-share growth, revenue growth and return on equity. This allows us to evaluate a company’s current and future growth potential.
Fundamental Bottom - Up Analysis: Investment selection and cash management form the basis of effective portfolio management. Our investment selection process focuses on finding the best to own based on a company’s return on capital, quality of management and other critical drivers.
Valuation: Investments that appear undervalued on an absolute basis may be expensive when compared to their peers. An investment’s true value can only be determined through evaluation of multiple factors. We use a matrix of valuation models that includes price-to-earnings ratio, price-to-book ratio and enterprise value/earnings before interest, taxes, depreciation and amortization (EV/EBITDA).
Quantitative Risk Management: We use oscillators and other proprietary models to monitor how each country, sector and currency performs over a given time period. In general, an asset that has moved more than one standard deviation up or down over a short period of time will likely revert back toward its mean.
Thematic Trends: Each investment trend has a discernible lifespan that guides how we invest in it. A destructive hurricane season is a short-term theme whose portfolio impact can generally be measured in months. The global infrastructure build-out is an example of a long-term theme that will have multiple bull and bear cycles over a number of years.
“All great and honorable actions are accompanied with great difficulties, and both must be enterprised and overcome with answerable courage.”
― William Bradford
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