Resources/Infrastructure
R2 Alpha Fund Management focuses on growth-oriented expansion businesses that will benefit from a hands-on partner. We invest where the team’s combined expertise can execute to expand into higher margin operations or consolidate a fragmented industry for scale. Specifically on sectors where we possess an “advantaged” position relative to other potential buyers through our network, our knowledge of industry trends, and alongside strategic relationships that alert us to potential targets.
A major focus for our portfolio is on infrastructure. These assets generally have a strong market position, operate in regulated or highly capital-intensive markets, yet our universe is in segments where there is an understandable customer. The global need for these investments, combined with the more limited availability of capital from traditional sources such as governments, will drive significant demand for private capital.
The Fund will seek to add value by:
- Identifying and qualifying targets prior to a formal sale process
- Focusing on investment to expand successful businesses either into new geographies where we have experience or through new use for proven technology
- Using our operating capabilities to increase efficiency and profitability
The fund will be flexible in investing through a hybrid structure combining direct and partnered deals:
- Primary Direct Deals: Primary direct deals where we have high conviction and domain experience
- Co-GP Partnerships: Co-investment alongside investment vehicles that have a competitive advantage in specific geographies, industry domains, structures, or specific transactions
- Partner Funds: Our partner funds are deep professional relationships where we have both a decision-making stake and aligned financial interests
R2 Alpha Fund Management seeks to uncover growth opportunities with limited risk, sustainable cash flow, and identifiable exit alternatives. The investment team has a strong biased toward deals where cash flows are expected to return capital to shareholders long before a sale or liquidity event may occur. We are opportunistic in looking at all markets where deals with similar risk/return characteristic exist, yet by focusing on specific industry segments, the partners have developed valuable expertise to better understand both the key profit drivers and the risks associated with each business. Our investment team follows a disciplined and consistent investment process to identify, select, and invest in companies aligned with our investment strategy and deliver superior returns to our investors.