Clarke Investment Mandate
Under the terms of the Clarke Investment Mandate, management is directed to generate excellent returns on a risk adjusted basis, and structure investments in such a way as to best safeguard Clarke’s capital. We have a preference for businesses with strong, defensible market positions and relatively high levels of net tangible assets that generate stable cash flows.
The Clarke Investment Mandate establishes the following six key criteria for core investments.
- Investments should be of a sufficient size to provide returns that are in keeping with the amount of time and effort expended by Clarke management.
- A management team shall be in place, or identified, that has the expertise and experience necessary to manage the operation of the business. Management shall have prepared a detailed and credible business plan that is consistent with Clarke’s investment thesis and expected return.
- Clarke must be in a position to influence the strategic direction of the business.
- Clarke must have a plan for adding demonstrable value to the business through direct involvement at the board and executive oversight levels.
- Clarke must have a defined approach for monitoring the implementation of the business plan and for regularly measuring key information, including business’ financial results and relevant macro-economic indicators.
- Clarke management must have an exit plan for the company’s investment.