Investment Strategy

Astara will invest in middle-market companies where its financial, operational, and strategic resources will combine to build sustainable value and deliver exceptional returns to investors. Leveraging our network of operators and advisors, we will find value in opportunities that others often overlook, often due to complex factors that repel most private equity firms.

Finding Opportunity

Astara will often l invest in sectors experiencing dislocation or in companies that are undergoing, or need to undergo, significant transformation.  These investments will often leverage a catalyst that will allow us to invest with a margin of safety.  Examples include:

  • First Institutional Capital

Entrepreneurial and family-owned companies in need of a financial and strategic partner

  • Corporate carve-outs and divestitures

  • Restructurings and bankruptcies

  • Stakeholder renegotiations:

Creditors, Suppliers, Customers, Labor, Regulators

Building Strong Companies

In partnership with strong management teams, we will embark on a multi-year journey to build sustainable value by engaging with and investing in our companies to improve their long-term performance.  Our team and network of industry operators and functional experts provide our portfolio companies with access to substantial resources that might not otherwise be available to them.  Key elements of our ownership approach include:

GOVERNANCE

An active Board of Directors that includes independent Directors with sector and functional expertise brings not only oversight but also valuable insight into the company’s strategic direction, customer and supply chain relationships, and experience implementing important initiatives. By engaging at the Board level, we support the execution of the value creation plan that we and management jointly develop during underwriting.

HUMAN CAPITAL

Employees are the most valuable asset of our portfolio companies. Workforce education, training, and succession planning are hallmarks of a great company. As such, we will invest in and empower our portfolio’s workforce while providing a healthy and safe workplace environment.

OPERATIONAL EXCELLENCE

As a team of both investors and operators, we appreciate how implementing industry best practices positively impacts a company’s performance. By partnering with excellent management teams and utilizing conservative financial leverage, our portfolio companies will have both the capability and flexibility to invest in equipment, human capital, and IT systems, while adopting proven processes and practices. These investments will allow our portfolio companies to improve both profitability and customer satisfaction.

ENVIRONMENTAL, SOCIAL, GOVERNANCE

We are strong believers in being good corporate citizens and that investments in ESG don’t erode investment returns – attention to issues like environmental compliance, safety performance, and corporate governance are additive to creating value. ESG principles help to inform our investment decisions and our approach to ownership.

MANAGEMENT

Partnering with strong management teams and aligning incentives is core to our investment approach. We will leverage training, collaboration, and investment to strengthen teams and drive portfolio company performance and returns for our investors. Executives will co-invest alongside Astara and participate in a Management Incentive Plan that provides significant rewards for superior performance.

STRATEGIC DIRECTION

A coherent strategy is informed by understanding, with the support of data, the competitive dynamics faced by each company. Focusing companies on their core competencies and where they have a competitive advantage allows management to concentrate on the most important initiatives and position their organization for long term growth. Equally important is steering away from legacy business lines or units that have, through competitive or sector-driven changes, become unattractive areas for investment.

FINANCIAL CONTROL

Sound decision making is only possible when informed by good data. Having accurate, timely, and straight-forward reporting empowers management teams to make better decisions and drive improvements throughout the organization. We apply our experience to enhance and customize reporting for each company, focusing on actionable metrics and the most critical data to drive growth and efficiency.