Investment strategy

Virtus Capital deploys a multi-stage and multi-sector asset allocation strategy.

Multi-sector: Virtus Capital seeks investment opportunities across sectors with promising concepts and companies that demonstrate strong managerial experience, scalable business models and defensible competitive advantages.

Multi-stage: Virtus invests early stage and development capital, with both young companies entering into new markets and mature companies that are willing to innovate and open new avenues.

Active Partnership is how Virtus brings value by helping to make companies the best they can be.

Active Partnership stratagems begin during the due diligence process, as we prepare to invest, and continues through our equity participation right up to exit. At every stage, we aim to help our portfolio board and management to create a healthy, successful business with sound financials and a bright future.

This model is central to value creation in our investments

Our approach is individually tailored.

There are two elements to focus on:

  1. We are actively involved. We work directly and collaboratively with our portfolio board and management, providing ongoing support from our capacity as board members to ad hoc interim roles. Our role is to support management and give them the tools needed to build lasting capabilities and competitive advantages
  2. We use experienced resource. We apply the best team for the job through a combination of our highly experienced investment teams and network of expert advisors. This ensures the right skills and resources are in place to identify opportunities for performance improvement, transform businesses and deliver the value creation strategy.

We help create value through three elements:

Strategic and sector insight

Our understanding of specific sectors, growth trends and drivers of value is a core part of our initiation work. We add our experience in having helped management develop the strategy for companies over the years. In particular, we bring to management teams our understanding of how best to navigate through changing industries to maximize strategic value in the medium and long-term alongside the daily challenges of managing their business.

Operational and functional excellence

With the breadth of our investments across sectors and geographic locations, we are able to lift innovation across industries, helping our companies to become even better at managing commercial, operational activities and their capabilities. We also bring our management teams access to benchmarks and expertise across our global portfolio.

Outstanding governance 

We want to help the companies we invest in achieve market leading standards. By ensuring appropriate oversight and control, managing risks and creating best in class corporate responsibility standards we help develop businesses which are healthy and create value for all stakeholders.
It is critical that the three elements are considered together and not in segregation. Great operational capabilities won’t generate a market leading business unless there is the right strategy and strong governance.