Investment Strategy
Change Capital at Work
HM Capital's core investment strategy is to be "Change Capital" for its investments, whereby the Firm pursues opportunities with under-managed, under-capitalized or under-appreciated assets and transforms them into strategically relevant companies that command a premium price. The Change Capital strategy begins by ensuring a portfolio company has the appropriate management team in place, followed by the creation of a Change Capital-based operating strategy, with specific accountability to grow revenues, increase profits and optimize assets.
Change Capital strategies may include revenue growth initiatives such as investing in capacity and infrastructure, adding human resources, developing new products and pursuing alternative distribution channels. Profit growth initiatives can include eliminating redundant costs, implementing capital initiatives to improve efficiency, and managing the product portfolio to promote higher margin products. Asset optimization initiatives may include divesting non-core assets, monetizing excess working capital and pursuing complementary acquisitions.