Profits that don't cost the earth™
CVC Sustainable Investments assists small companies – whose operations, products and services we consider to be environmentally sustainable – grow into large businesses.
Investments generally take three to five years to mature (and occasionally longer). This investment horizon is usually sufficient for compounding to have a meaningful impact.
We prefer to fund established businesses that seek to expand their operations rather than start-up ventures. Early-stage investments exhibit a combination of technical, product, managerial and market risks that we are inclined to avoid.
We also try to avoid excessive concentration of capital in any one company or industry. We are building a portfolio of ten to twenty investments to provide the right balance of diversification and return potential.
CVC Sustainable Investments does not depend upon frequent trading of securities to add value to the investment portfolio. Instead we focus on the economic return that the investments themselves produce over the medium to long term.
Finally, CVC Sustainable Investments seeks co-investment partners where an investment opportunity, were we to take it up entirely, would cause the investment portfolio to be excessively concentrated in one industry or one company.
In summary, CVC Sustainable Investments' investment philosophy is:
- seek opportunities to provide expansion capital to established Australian companies whose businesses are environmentally sustainable;
- invest for the longer term and avoid frequent trading of securities;
- reduce risk through diversification – but not at the expense of cash-on-cash returns; and
- focus on real after tax return.
This approach is consistent with the investment philosophy of the CVC management team since 1985.