We do not seek to manage investee companies but rather to identify high quality management teams who are able to execute on a business plan and expand and deliver value. It is important for us to work with like-minded people who have a positive track record and a real ambition to grow.
Vaalon Capital is not just about providing funding and we aim to become true partners, able to bring relevant knowledge and experience, which is generally needed to help management achieve their full potential e.g. through expanding internationally or developing new products and/or offerings.
We generally expect to support the management and businesses in which we invest for an average of five years while using our expertise and networks to help them (i) sustainably improve operations and (ii) achieve their ambitions and our shared objectives.
We place significant emphasis on building strong relationships and our aim is not to trade in and out of companies for short-term gain.
We always participate actively on the boards of investee companies, whether in minority or control investments, to provide support to management in their efforts to build value for all.
Appropriate incentivisation of management teams is essential and we aim to ensure a strong alignment of interest between management and shareholders including through bonus schemes and long term incentive plans. Wherever possible, we seek to insulate management from regulatory bureaucracy, so that they can focus on enhancing performance.
Our international experience and relationships mean we are able to leverage our networks to assist management including through securing strategic partnerships with suitable organisations and groups.
Wherever possible, we endeavour to play a major role in any M&A situations with a view to ensuring that the process of concluding these doesn’t cause a distraction for management and a drag on operational performance.