Investment Philosophy
Röko invests equity capital from its own balance sheet into stable and profitable companies with strong market positions in their respective niche markets. Our investment philosophy is predicated on true long-term ownership, independent governance, and proven ability to achieve results.
We aim to invest in profitable companies that meet our criteria:
- EBITA between 2-10 MEUR,
- EBITA margin of at least 10%,
- Continuous profit growth, and
- Leading market position.
We are results-oriented and determined to create value by improving the performance in our businesses over the long-term, which we believe is achieved by sustainable and profitable growth – delivered through alignment of agendas and collaboration between employees, management, board, and owners. Our relentless drive is best matched with other stakeholders through equity partnerships and long-term incentive programs which we aim to have in most of our subsidiaries.
Governance
Our core principles are:
- Empowerment
- Simplicity
- Continuous improvement
We believe in a decentralized -, non-bureaucratic- and independent governance model, where the individuals that can control the fate of the business should be trusted and empowered with the responsibility of decision making. Röko will not introduce ourselves as operational leaders in our operating companies, but rather use our team’s combined experience to be a sounding board when required.
For both the current- and future managers of our portfolio firms, our decentralized governance model represents independence, responsibility, swift decision-making, and minimal reporting focusing only on important performance indicators. We believe this gives our companies the right setting to enable continuous improvement of their business and processes.