Partners In Business
When business owners start thinking about capital, whether it’s for expansion, making an acquisition, or commencing an ownership change, the decision is rarely just a financial one. It’s a decision that has a long term impact. Choosing the right partner is critical.
Working together with high levels of trust and integrity are key drivers of success. It’s no coincidence that our company owners often become good friends.
Direct Capital invests with and alongside business owners and managers. We take the same shareholding risks as all other owners. We become a key sounding board for business owners and their management team. We are financial investors backing good people with good businesses wanting the same as us – to grow the business for value uplifts.
What are the common issues that owners think about before taking on a financial partner?
Does ownership get diluted? Yes, but that’s a good thing. It means new capital and a broader shareholder base. The key is whether new capital increases the future value of the business. If it doesn’t then there’s no point taking on new capital.
Does management lose decision-making control? No, Direct Capital invests in the management running the business. We act the same whether we are a 20% shareholder or 80% shareholder. We’ll contribute to strategy and planning and can help on strategic things like acquisitions but we can’t run the business and don’t want to.
Can owners take some cash off the table? Yes, we understand this need for business owners, so we’re flexible about how we invest.
Do we have a short term investment horizon? No. Turning capital into growth, profit, and long term value takes time.
Our returns come from helping owners grow theirs