Investment Process

Profits that don't cost the earth™

CVCSI invests in companies that we judge to be environmentally sustainable. This means that they are either dedicated to addressing environmental problems or that their operations cause little or no environmental damage.

We target companies whose activities address all or some of the following:

• reduce dependency on non-renewable resources;
• reduce or eliminate toxic or environmentally harmful by-products of business processes;
  
• reduce the production of greenhouse gases;
• reduce waste, increase durability of products and/or support materials recycling;
• contribute to biodiversity and/or ecosystems protection or recovery; and/or generally provide commercially sound solutions to environmental problems.

Target companies generally integrate into their business practices any one or more of the principles of waste management, pollution prevention or efficient use of natural resources, but they may focus on technologies that solve or remediate environmental problems. These companies frequently:

• make environmental sustainability a business goal and establish internal policies and procedures to promote and measure attainment of this objective;
• explicitly set out to exceed the minimum environmental standards stipulated by law or by other regulations to create a “best practice” organisation that uses fewer resources per unit of output than peer organisations; or
• transform established business processes to eliminate environmentally unsustainable practices.

CVC Sustainable Investments generally invests in the following types of companies:

• small and medium sized private companies;
• companies seeking to list on a recognised stock exchange (pre-IPO); or
• small to medium market capitalisation listed companies which satisfy CVCSI's environmental sustainability criteria.

Potential investees must be able to demonstrate:

• compatibility with CVC Sustainable Investments' criteria for environmental sustainability;
• highly competent, dedicated and honest management that is receptive to external assistance when it is needed;
• a track record of growing revenues and profitability without excessive reliance on debt;
• a unique position of strength in an industry or industry segment that confers pricing power or other quasi-monopoly benefits;
• immediate opportunities to expand into one or more new markets; and
• in the case of unlisted companies, a high potential to list on ASX or another recognised stock exchange within five years or high potential as a candidate for trade sale.

CVC Sustainable Investments seeks investment opportunities that are capable of producing a minimum rate of annual return of 20% (calculated on a pre-tax cash-in, cash-out basis after fees and expenses).