Strong Partnership with Management
The most important element of our investment process is to identify and align ourselves with outstanding and principled management teams. We view ourselves as partners to our operating executives; to that end, our management partners typically invest meaningful equity alongside Aurora in each of our transactions.
Targeting the Middle Market
We are committed to the middle market, investing in platforms with enterprise values typically between $100 million and $1 billion. It is our belief that companies of this size are large enough to possess durable business models and real infrastructure, yet small enough to benefit from private equity governance, robust strategic planning, operational improvements and add-on acquisitions.
Operating Approach to Building Value
It is our belief that superior long-term investment returns are driven by increasing the quantity and quality of free cash flow that a company generates. As a result, Aurora is dedicated to fundamentally improving the quality of the businesses in which it invests, principally by selecting businesses for which our ability to add value will be the primary driver of investment performance (rather than the timing of cycles). While Aurora professionals bring significant capital markets expertise to our companies, we are principally focused on creating value through enhancing the earnings of each of our businesses through all economic cycles.
While we work with our management teams to identify and address key strategic and operational opportunities, we delegate operations 100% to management. We interact with our management partners through the Board of Directors of each company. Aurora provides access to a world-class network of human capital with significant expertise across industries and functional areas through our Executive Board and executive network; these resources support our management partners in developing and augmenting a set of strategic priorities. Once these priorities are defined, we allow our management teams to execute. Our objective is to provide our management partners with the capital and operating resources they need to grow and succeed. We bring highly relevant resources and expertise to our portfolio companies in functional areas such as lean and continuous improvement/Six Sigma, realignment of sales and marketing organizations, international expansion, branch/store roll-out strategies and add-on acquisitions.