What We Look For in a Durable Business

We look for demand that repeats because a customer needs the service to remain in compliance with a regulation, keep an asset operating, maintain a certification, or avoid a costly failure. We are particularly interested in services where the customer spends relatively little to avoid a much larger operational, financial or regulatory problem.

We favor industries with sustainable market demand and constrained labor supply, where our focus on recruiting and talent development can be an advantage for companies that already have a deep bench of skilled, licensed or specialized employees.

We invest in companies whose existing cultures are a differentiator as we believe talented long-term employees strengthen service quality, customer retention and barriers to entry.

Finally, we seek returns driven by improving and compounding the business itself rather than relying on leverage or multiple expansion. That means being disciplined on entry valuation and favoring companies with predictable earnings, strong cash conversion, manageable capital needs and the resilience to perform through a difficult year.