Holding Structure Criteria
Three structural requirements applied before any strategic holding is considered for principal commitment.
Control Architecture
Governance rights, voting mechanics, and shareholder agreement quality are evaluated as primary investment criteria. Influence without legal protection is not a strategic holding — it is an expensive minority stake.
- Voting rights and veto provisions mapping
- Drag-along, tag-along, and right-of-first-refusal terms
- Deadlock resolution and governance escalation framework
Cash Profile Durability
Strategic holdings must generate predictable, recurring cash flows that support long-duration conviction without liquidity stress. Cash cycle stability is treated as a structural requirement, not a bonus characteristic.
- Normalized EBITDA and free cash flow analysis
- Customer concentration and contract durability
- Working capital cycle and capex intensity review
Concentration Discipline
Cross-holding concentration, geographic risk clustering, and correlation to broader portfolio positions are evaluated to ensure strategic holdings strengthen portfolio resilience rather than amplify hidden risk.
- Cross-holding and related-party exposure mapping
- Sector and geographic concentration band checks
- Correlation analysis versus existing principal portfolio