What we do
As a large proportion of our portfolio is permanent capital managed with a long-term view, our primary goals are to maximise returns and create a lasting, positive impact from our existing investments. We are driven to find better ways to do things and new ways for businesses to operate.
We believe that the most sustainable businesses are those which have strong corporate governance and create positive environmental and social impact. We support our businesses to maximise their positive impact, such as through the responsible management of physical assets, contributing to communities where they operate and supporting local or sector-specific charitable causes.
What we look for
Terra Firma is sector-agnostic, focusing on asset-backed investments in essential industries.
We invest in businesses on a deal-by-deal basis where we see multiple opportunities to create value. As we are not bound by a fund structure, we have the flexibility to create bespoke deal structures in partnership with our investors.
How we create value
We will only make an investment when we are clear how we will create value. With a key focus on growth, we aim to drive financial, strategic and operational transformation through:
1Our active, hands-on approach
- We work closely with the leadership teams at our portfolio businesses and provide access to a wide range of sector experts and SMEs.
- We look at a business with a fresh pair of eyes which can provide new insights and an alternative approach, designed to make the most of long-term macro trends we have identified.
2Building through mergers and acquisitions
- We undertake mergers and acquisitions to strengthen our portfolio businesses, aiming to grow their scale and capability and consolidate and improve their position within their industries to release synergies.
- Since 1994, Terra Firma has executed more than 70 additional bolt-on acquisitions.
3Developing through capital expenditure
- We are prepared to invest in our businesses to transform them.
- As part of this process, we implement new frameworks for capital expenditure programmes to improve performance and grow our businesses organically.
- All capital expenditure is controlled by Terra Firma using strict return criteria, ensuring that only the highest impact programmes are implemented.
4Lowering the cost of capital
- We lower the cost of capital of our businesses by repositioning them to reduce business risks.
- We do this by diversifying and stabilising cash flows and resolving business and regulatory uncertainties. We also actively manage their capital structures.