We focus typically on market-leading multinational companies with a clear and differentiated proposition providing sustainable barriers to entry.
A significant part of the Eurozone economy, this sector covers a varied range of long-established industries and companies with well-designed, innovative and competitive product offerings.
Our objective is to identify and invest in European manufacturing and industrial companies that serve growing end-markets, and that combine unique capabilities, superior products, best-in-class process know-how, design and technology leadership, and market advantages. We also look for the ability to withstand pressures from low-cost country competitors, and potential to build and extend their existing market positions. Companies like this will usually have pricing power and be market leaders within certain geographic regions and product categories.
Ongoing competitive changes in this sector open up opportunities to invest - especially in supporting moves into developing economies, where there is access to new high growth markets as well as the potential for lower cost manufacturing. We also see investment opportunities arise when conglomerates seek to divest non-core assets, in stock market de-listings, or in acquiring platform businesses with strong core markets.
The sector is very broad, but our primary focus is segments that benefit from long term growth drivers and reduced cyclicality including: aerospace & defence; cleantech and renewables; industrial products; medtech; speciality chemicals; and water.
We typically look for: