L1 Capital International believes that quality and value are key drivers of long-term total shareholder returns.
L1 Capital International will generally invest in businesses that demonstrate:
Investment Philosophy
Durable business models
Well structured, growing industries
Aligned management with a strong capital allocation track record
Growing free cashflow
An ability to sustain a high return on invested capital
An ability to sustain high returns on invested capital
An ability to reinvest capital at attractive incremental returns and/or return excess capital efficiently to shareholders
A conservative balance sheet and funding structure
Proactive, favourable ESG policies and practices
Our ESG approach
L1 Capital International integrates ESG considerations into its investment diligence and decision-making alongside qualitative and financial considerations. Businesses in which we invest must have sustainable policies and practices which address and improve ESG issues over the medium to long term. Our approach can be summarised in three ESG principles.
L1 Capital International:
- is a long-term, responsible investor, investing in listed companies which meet our strict quality requirements based on our rigorous, proprietary research-driven investment process.
- espouses a strong culture of compliance, risk management and ethics.
- seeks to ensure the Board and Management of portfolio companies actively promote a similar culture.
We consider the governance of a company and any material social and environmental impacts when forming our view of each company’s potential for long-term success. We focus on identifying any areas of potential concern and, where appropriate, discussing these with company management and monitoring their progress over time. We have developed our own qualitative ESG ratings which capture our assessment of each businesses across six key areas:
- Environment
- Management
- Governance
- Safety
- Taxation
- Public Policies and Community Support