Partnering with Management

Partnering with management is key to the Core investment philosophy. We back incumbent management teams and provide active support to drive growth in our portfolio businesses. Our success has been built on recognising and rewarding management with equity ownership in each transaction.

We work closely with management teams and business owners, bringing experience and equity capital to maximise the growth and strategic value of companies we invest in. Direct advisory involvement by Core’s management team means quick, flexible decision making. Our extensive network of investment partners, bankers, service providers, and entrepreneurs are critical to our ability to source attractive investment opportunities. Our initial investments are typically in the $3-15 million range and we often serve as the lead investor. However, we work closely with other leading investment partners and we build, or participate in, investment syndicates for every investment we make. Our investments are generally structured as either preferred stock or convertible notes. 

We search for investment opportunities in the wider Asia-Pacific region. We seek long-term capital appreciation as well as current income through investments in mezzanine securities, often with an equity component such as warrants or common equity. We will consider a broad array of investment opportunities, including expansion financings, recapitalisations, acquisitions, and restructurings. Core targets investment opportunities in companies with leading positions in their markets, strong, non-cyclical financial performance, and substantial free cash flow after capital expenditures. We believe that the strength and experience of management is key to the success of a company. Strong sponsorship is equally critical, and it is important for the sponsor and/or management team to have a significant equity interest in the company.

We pursue long-term partnerships with pre-eminent equity sponsors, managers, and placement agents. We also seek to provide mezzanine financing on a recurring relationship basis together with our private equity investments.

Transaction in which we Invest

Core invests across a wide range of transactions varying considerably by industry, size of investment, and specific structure of the securities. However, all our investments share a common trait, which is the underlying high quality of the companies and management teams in which we invest. Growth is the core driver of our returns, whether achieved organically, by acquisition or through business model transformation.

Examples of the types of opportunities that we typically consider include:

LEVERAGED BUY-OUTS/MANAGEMENT BUY-OUTS:
We invest alongside experienced financial institutions and managers to purchase companies. Our investments provide a required source of committed, subordinated debt capital, which enables the execution of these transactions. 

EXPANSION/GROWTH INVESTMENTS: 
We invest in high-quality companies that seek additional capital to fund further growth, either through acquisition or expansion. These companies have a proven track record, an experienced management team, positive operating cash flow, and identifiable growth prospects.

RECAPITALISATIONS: 
We provide capital to facilitate the recapitalisation or refinancing of attractive companies. Sometimes companies prefer to negotiate a direct mezzanine investment as a discreet, rapid and less complicated alternative to a public sale of equity or debt. Proceeds from a recapitalisation can provide liquidity to shareholders and boost returns, while leaving open the option for a later IPO or sale of the company.

PRIVATE, CLOSELY HELD COMPANIES:
Working in partnership with experienced and successful private owners, we provide capital for expansion through internal growth and acquisitions. We understand the unique interests of family owners and their desire to remain independent as they continue to manage and build their companies.