Investment Strategy

Funds advised by Elbrus invest in businesses which fall within four key investment themes:

  • Changing consumer patterns
  • Business and consumer infrastructure needs
  • Optimising use of natural resources
  • Healthcare and education needs

Funds advised by Elbrus Capital focus on control or significant minority investments in medium sized businesses. The following characteristics are desirable for the target portfolio company to have:

  • Tested business model translating into superior economic characteristics (i.e. positive sustainable cash flows and high return on capital employed)
  • Sufficient scale / on path to build sufficient scale
  • Profitable growth potential
  • Attractive industry structure low concentration with potential for buy-and-build, significant barriers to entry, satisfactory bargaining power against key counterparties, safe from substitutes
  • Availability of strong management with proven track record of delivering results while acting in the best interests of the shareholders
  • Clear exit potential potential interest from industry consolidators, multinational buyers or public markets
  • Limited regulatory risk
  • Limited vulnerability to economic cycles
  • Preferably, significant presence in the regions to exploit growth potential outside of Moscow and St. Petersburg

Funds advised by Elbrus Capital have an entrepreneurial and hands-on value creation approach centred on:

  • Identifying key performance indicators, working with management to develop optimal business strategies and then closely assisting with and monitoring their implementation
  • Attracting high-quality professional management and developing compensation schemes linked to long-term financial performance
  • Identifying and developing critical business functions

Funds advised by Elbrus pursue a buy-and-build strategy:

  • Achieve superior returns by creating accelerated growth and improved profitability through consolidation of small and medium-sized companies in fragmented markets
  • Focus on platforms strong companies which are able to grow organically and through buy and build strategies
  • Acquire add-ons to achieve sufficient size and improve market position

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