The 32 Degrees investment strategy has been tested and improved upon over many economic cycles and various business conditions. The strategy has been deployed by the founding partners as both operators and fund managers. This combination has provided the Firm the unique perspective of seeing over “both sides of the fence” and allows the Firm to provide strategic direction to portfolio companies that is considered relevant and value-added.
The core principles of 32 Degrees’ investment strategy are as follows:
- Leverage our relevant industry experience. The 32 Degrees investment team has spent their entire careers working and investing in the Canadian energy industry. Combined, the team has over 90 years of relevant industry experience and have “been there and done it”, finding millions of barrels of oil and over a trillion cubic feet of natural gas in their careers. The team has all of the critical elements for making successful oil and gas investments including geology, engineering, financial and energy services expertise. We look to utilize this experience to anticipate market opportunities that may be created from sustainable commodity price increases, technology advancements or other market events
- Maximize our strong network of industry contacts: Our long history of success first as operators and then fund managers has provided us the benefit of a strong and extensive industry contact network. We look to maximize the depth of our network by being the equity partner of choice for management teams. We are continuously working within our network to build and strengthen relationships with industry participants and proactively seek new investment opportunities. These relationships, which are continuously being developed, are the reason we are seen in the industry as a trusted long-term partner and provide is with significant proprietary transaction opportunities.
- Invest in management teams that share the same core principles. The 32 Degrees investment team looks to make equity investments in management teams that not only have exceptional execution skills, a strong track record of success and a willingness to invest substantial personal capital, but also in teams that share the Firm’s core strategy principle of operating with or providing significant cost savings. The Firm believes that the combination of exceptional management with a business strategy that has a strong cost focus will be best positioned to limit the effect of commodity price downturns and benefit from an increase in commodity pricing.
- Adhere to a disciplined investment, due diligence and post-investment process: The 32 Degrees investment and due diligence process is comprehensive and extensive. Our disciplined approach ensures that we have examined all the crucial elements of an investment and that we have appropriately acknowledged its relevant risks and opportunities. Once the investment is completed we continue to work with management teams to help ensure the strong execution of their business model, particularly within the first year of investment.
- Execute a distinct value creation model. The key to our investment strategy is to know where we are going before we begin. Before we make any investment we ensure there is a strong plan to create value in a time frame that is consistent with our investment criteria. Whether we are investing in early stage oil and gas exploration and production or energy services, equipment or manufacturing we have a repeatable model for value creation that generates significant value for our management and limited partners.