There are three fundamental sources of corporate value creation:
- Acquiring good assets at sensible prices.
- Arranging the optimal financial structure for the acquisition, frequently via a restructuring of the balance sheet.
- Actively improving the performance of the business through superior management.
Investing, financing and managing, underpinned by a clear strategic vision, constitute the three integrated activities of Stellican.
Stellican is willing to invest in healthy, indifferently managed or distressed businesses whose potential value is considerably higher and which Stellican, working proactively with management, feels able to unlock. Currently, there are very few companies using this style of investment.
Superior management is the largest and most controllable source of value creation. To the extent that good management involves effecting change and change requires control or significant influence, Stellican will generally invest in situations where management of the company can be proactively exercised through substantial ownership and board representation. The preferred method of exercising such management is, wherever possible, through good existing management teams whose operational experience will complement Stellican's strategic and financial skills.