As lead shareholder in each of its core investments, Blue Harbour partners on an exclusively collaborative basis with company management teams to design and implement strategies to unlock significant shareholder value over a two-to-three-year horizon. These strategies are often similar to the strategic actions that private equity investors pursue after taking a company private. As a public markets investor, however, Blue Harbour avoids the control premiums, illiquidity and leverage of the private equity model.
Value Added
Through Blue Harbour’s many investments since inception, the firm’s investment team has developed extensive experience assisting companies in:
- Designing and executing strategic corporate initiatives, including acquisitions, divestitures, spin-offs, asset sales, joint ventures, strategic partnerships, and other transactions that can improve the overall value of the corporate enterprise.
- Enhancing capital allocation and efficiency, including investigating the optimization of returns on cash flows by analyzing capital investments, acquisitions, share repurchases, special dividends, recapitalizations, going-private transactions, REITs, MLPs, securitization transactions, and the management of the overall corporate balance sheet.
- Maximizing revenue growth and profitability, including the enhancement of brand and franchise value, driving revenues and profit improvement.
- Align management and shareholder interests, including enhancements to management compensation plans to allow management to participate in long term shareholder value creation.
Investment Criteria
Candidates for investment must be well-managed, high-quality businesses that are fundamentally undervalued and trading at a significant discount to intrinsic value. They must possess favorable industry dynamics, sustainable franchises and recurring free cash flow business models.
