Investment Approach

Disciplined macro sector focus

We work together with our Operating Partners to develop macro investment theses around specific industries of interest. We target industry sectors we know and understand where long-term growth opportunities exist as a result of:

Industry demand cycles
Macroeconomic trends favoring specific industries
Trends in product substitution or technological change
Developments in industry structure
Competitive advantages or barriers to entry that benefit certain types of companies

Commercial and Operational transformation

Our investment strategy centers on the ability of our experienced Operating Partners to drive fundamental improvement in the businesses we acquire. We invest in companies only when we and our Operating Partners, who serve either as active board members or as part of the senior management team, can develop clear and achievable plans for increasing revenues, improving profits, and raising returns on invested capital. With business transformation as our central objective, we work closely with our Operating Partners and actively mobilize capital and outside resource to support our companies’ business objectives.

Contrarian value perspective for complex situations

We see challenges as opportunities. Hard work can overcome many business challenges, and opportunities can often be found in temporarily out-of-favor industry sectors. As a result of our Operating Partners’ deep experience and our patient investment perspective, we can invest in complex situations involving fundamentally sound companies with short-term business problems, business cycle challenges, capital structure limitations, or management transition issues.

Targeting exceptional returns that do not depend on leverage

Seven Point achieves strong investment returns by driving fundamental value creation from commercial and operational improvement, not by employing high levels of debt leverage. We establish conservative capital structures to limit debt service requirements and allow our businesses to reinvest cash into projects that foster long-term value creation.

Risk management

We invest when the ability to drive value creation is heavily weighted toward factors we can largely control. Given the deep experience of our Operating Partners, such factors typically involve company-specific operational challenges we can address aggressively and with a high probability of success. This orientation has driven superior returns for our investors, both on an absolute basis and relative to the risk dynamics of our investments.