Investment Strategy
Horizon Goals Generate attractive risk-adjusted returns for our Investors
Horizon aims to generate attractive risk-adjusted returns for its Investors. To achieve this goal, the team continuously opportunities in the market with a special focus on Portuguese operating companies.
We are actively seeking high-growth real assets that lack capital, the scale and/or the skills to monetize their potential, but also overleveraged companies, bringing innovative solutions to deliver superior returns while mitigating credit risk. In addition, only viable businesses are to be targeted so that results can be delivered on a long-term horizon, given a planned and foreseeable exit within a timeframe of 5 to 7 years post acquisition.
Investment Criteria
The Horizon fund seeks investments with a particular set of characteristics that make them an attractive investment opportunity:
- Assets that provide an essential service with strong barriers to entry;
- Assets with long and regulated lifecycle;
- Assets generating stable and predictable cash flows;
- Assets with sustainable growth profile and robust downside protection, exhibiting low volatility and cyclicality; and
- Assets with inflation linked revenues.
We offer to our larger Investors opportunities to co-invest in specific assets giving them greater exposure to those assets than just through the Fund.
Value Creation Process
Our goal is to create a solid, robust and diversified portfolio, thus being able to create value for all stakeholders.
A diversified portfolio implies diversification in terms of type of investments, industries and maturity/stages.
We analyze investment opportunities across a broad spectrum of sectors, meaning that all opportunities are infrastructure alike but industry agnostic, with a focus on companies with proven track-record in generating robust equity cash-flows from regulated activities.
The Fund will seek to control the assets acquired or will otherwise be capable of exercising a significant influence.
Value creation will be pursued through the following conditions:
- where transaction multiples are attractive;
- under-priced assets with stable cash-flow generation and low demand risk, benefiting from restructuring, deleverage and carve-out strategies from local players;
- innovative solutions for infrastructure-like assets, extending the concept to areas where value added ideas are not fully captured; and
- hidden opportunities within the infrastructure space and other regulated key sectors.
Our investment approach is based on a disciplined due diligence process which includes an extensive analysis and thorough risk assessment thus ensuring independent decision-making process and effective implementation.