BCEE aims to “co-invest” with management teams and entrepreneurs who are like-minded in philosophy and approach. Like the changing markets, companies will encounter amazing challenges and opportunities that require a flexible and honest approach to confronting their issues. While decisions are sometimes not easy, BCEE shares in the responsibility and repercussions. Typically, incentive share option programs are put in place to help provide an incentive and reward for a company’s management team so that when a positive benefit is created, all parties may share it. However, this approach is always balanced to ensure that risk is borne by all concerned.
BCEE wants to invest in companies that not only have a great management team with a proven track record of industry experience, but also enjoy a distinct competitive advantage or unique position within their market segment. While BCEE does invest in start-up ventures, the market opportunity must be unique, and the plan must be sponsored by an entrepreneur or management team with a solid track record in the industry and ability to invest meaningful capital alongside BCEE.
BCEE’s investment horizon, from the first infusion of capital into a portfolio company to sale of its ownership, likely spans three to four years. During the investment period, members of the Executive Team actively participate at the supervisory board level of the portfolio company, assisting the management with the making of critical decisions that affect the performance and development of the business. In addition, assistance in creating proper information and reporting systems is provided, in an effort to help managers and shareholders better understand how to guide and stimulate growth and more intelligently compete in increasingly more sophisticated markets. Reinvestment of profitability to support more rapid growth of a business is an important element of BCEE’s philosophy.
