Firefly Capital seeks to make few investments in businesses that promise high returns on investment.
In managing our investments we tend to focus on:
The people in whom we invest
The business model underlying the opportunity
Accordingly, the investment would ideally have the following characteristics:
Skilled management in place (who are invested in the business)
A business model that has favourable business economics, generates cash, has barriers to entry, requires modest capital and offers wonderful growth prospects.
Firefly Capital’s preference is to favour businesses that require intellectual capital to grow and in which they can invest their own time to assist in developing the business strategy. These types of businesses are often service based businesses. The Directors spend time ensuring that the business and its industry are well understood before investing.
Firefly Capital enjoys partnering with people who have high levels of energy, integrity and skills and are drawn to businesses that require modest capital, have favourable business economics and are obviously high growth opportunities. They seek to invest capital in making a return that is significantly higher that what is generally achieved in listed equity market.
The Directors often make investments in companies which require their time.