INVESTMENT APPROACH
- We evaluate each potential investment situation individually, considering a company’s overall quality, management expertise, intrinsic value and market position
Targeted companies possess highly visible and predictable revenue and cash flow characteristics in sub-sectors that exhibit strong secular trends
- Our approach is grounded in fundamental analysis to identify situations where we believe that the target company of our investment can generate returns on invested capital (“ROIC”) in excess of its cost of capital for a demonstrable period
To this end, we seek businesses with a sustainable competitive advantage and differentiated product offering in industries with existing barriers to entry
To create or extend these characteristics our investment theses may involve funding consolidating acquisitions to achieve greater scale, recapitalizations or restructurings that enable a management team to carry out a long-term strategic plan - We deploy capital in areas where our active involvement with companies will provide an advantage unavailable without our participation
Mr. Friedman’s long-standing contacts and transaction history with executives and board members across several industries provide a unique entry to develop strategic partnerships between target companies and Flexis’ investments - In addition, in the current investing environment, we seek situations where we can provide creative financing solutions to companies that are unable to finance through “traditional” means
We believe the ability to provide “fresh” capital without the distraction of problematic, legacy portfolio investments allows us to take advantage of a number of opportunities where the alleviation of financial stress can unlock great value