Stellican's investment parameters range from public and private equity investments to public and private debt securities and bank debt. The approach is purposely opportunistic and, as such, there is no market sector focus: the strategy resides in Stellican's investment and management approach to deals.
The key characteristics of an investment candidate are neither novel nor likely to be found all in one company, but they reflect a sound investment approach:
- Leading market share.
- Good brand, franchise or reputation, whether current or past.
- Solid asset backing, including preferably non-core assets.
- Potential to increase earnings and return on capital employed.
- Actual or potential high cash generation.
- Strong management team.
Ultimately, the company must have or have the potential to gain a sustainable competitive advantage within a specific market.