The key to success in emerging companies

When investing in emerging companies, it’s the quality of the management team that matters above all else, says Jonathan Pearce, Portfolio Manager at the CVC Emerging Companies Fund. A great management team can turn an underperforming company around, but conversely, a bad management team can destroy a successful company.

“Rightly or wrongly, if we don’t like management when we meet them – we don’t get a good feeling about them, or we do some checks and we’re uncomfortable with their history, we will walk away from an investment.”

High quality, long-standing, and dedicated teams are the key to building a real business for the long term. In this video, he shares a current example; an ASX-listed turnaround story trading on a single-digit earnings multiple.

Learn more about Emerging Company investing

CVC Limited is an ASX listed diversified investment company, deploying capital across a variety of asset-classes including public companies, private equity, funds management and property. Click here to find out more