Investor Presentaiton
CAPITAL ALLOCATION PHILOSOPHY (CONT'D)
GEORGIA
CAPITAL
IRR & MOIC¹ IS THE KEY DRIVER
FOR GCAP TO INVEST IN NEW
OPPORTUNITIES
ROIC IS AT CORE OF DECISION MAKING WHEN OUR PORTFOLIO
COMPANIES ARE INVESTING OR DIVESTING ASSETS / BUSINESSES
KEY MONEY MULTIPLES AT GCAP LEVEL
M
IRR
M
MOIC
KEY METRIC FOR REINVESTMENT DECISION MAKING AT PORTFOLIO
COMPANIES' LEVEL
•
ROIC
•
ROIC should be more than WACC for new investments
Portfolio companies to continue divestment of low ROIC and/or non-core
assets & businesses to enhance ROIC
e.g. recent hospital (HTMC) sale transaction, improving healthcare services business
ROIC by 90bps on a proforma basis
GCAP ROLE VIS-À-VIS PORTFOLIO COMPANIES
Approval of all capital allocation decisions: equity, debt, profit
reinvestment, divestment etc.
• Strategy setting, business plan approval and monitoring
•
Human capital (CEO & CFO) allocation & KPI setting
Georgia Capital PLC | 1. Multiple of Invested Capital (MOIC).
16View entire presentation