We believe in active ownership and view every investment as a partnership. As a credit investor we contribute to the development of leading and sustainable enterprises and act as a constructive partner to shareholders, management and employees.
As an active portfolio manager, we choose to limit the number of holdings as much as possible without increasing the concentration risk significantly. This allows us to spend more time analyzing each credit, both before investment and through the monitoring phase and gives us a better chance of staying one step ahead of the rest of the market.
NCP funds invest in companies with strong cash flows and historical financials, solid balance sheet as well as well-experienced management and owners. We invest across most sectors in the Nordic region, but refrain from investing in companies that are dependent on one single exogenous factor.
All investments are evaluated using NCPs proprietary sustainable return model, where we diligence the credits commercial abilities, financial track-record and ESG impact. Each investment is evaluated on its own merits, but we also consider the total portfolio composition to make sure we have a strong diversification with regards to sectors, geographies, markets and risk level. Each investment requires a unanimous approval from the investment committee.
NCP have a structured and repetitive investment process:
- We identify investment opportunities through our broad network
- We make investment decisions based on thorough due diligence using the proprietary NCP sustainable return model
- We monitor each holding closely and have regular discussions with management
- We are long-term investors, though continuously aim to optimize the portfolio