Sullivan Street is a conviction investor actively seeking investment opportunities which require taking a strong view on one or more key aspects of the company, market or strategy where others may be more sceptical. We adopt a high intensity approach to stewarding and improving our businesses, proactively managing the major risks and issues associated with those views, and are therefore unlikely to be the right home for a business lacking near-term challenges and already on a serene path to growth and value creation.
This does not necessarily mean turnaround situations, although we have invested in these before, but will mean that an opportunity is often likely to come with complexity in three areas – on acquisition, in their execution and capital structuring; on strategy in their commitment to a strategic view and patience to see that through; and operationally in their need for intensive practical support for change in operations or improvement in personnel.
Sullivan Street focuses on businesses with these characteristics which operate in sectors or niche sectors with broadly positive long-term macroeconomic or demographic trends, but critically is attracted to assets which have previously been misowned in one way or another. We believe there are such things as good stewards for businesses, and if we do not believe we can be a better owner and steward than the incumbent then we have nothing to add to the business.
Given this approach, Sullivan Street does not build an extensive portfolio but concentrates energy and resources on a limited number of companies at any one time.