Castelnau Group's strategic vision and key investments unveiled
London, UK
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March 27, 2024 09:32 AM Eastern Daylight Time
Castelnau Group Ltd (LSE:CGL) Richard Brown and chief investment officer Gary Channon, who is also the founder of Phoenix Asset Management Partners Limited, discuss their investment approach and future plans in an interview with Proactive's Stephen Gunnion.
Channon elaborated on their investment philosophy, inspired by Warren Buffett, focusing on high-return businesses they can understand, monitor, and buy at attractive prices. The inception of Castelnau was driven by the desire for permanent capital to own and enhance businesses indefinitely, integrating modern techniques into traditional businesses, symbolised by the name 'Castelnau' - new castles.
Their strategy involves control and risk reduction, starting with initial companies in insurance and improvement positions.
Brown highlighted the clarity and opportunity in their approach, aiming to enhance intrinsic value through strategic investments and improvements.
Key investments include Dignity, the UK's largest private funeral business, and Hornby, a portfolio of heritage toy and collectable brands, with a focus on modernising and leveraging core brands for future opportunities.
Castelnau's approach to portfolio companies emphasises innovation, culture, technology, and strategic growth without the pressure of exit timelines. The "Castelnau Way" framework encapsulates their knowledge and expertise, aiming to foster a unified identity and philosophy across portfolio companies.
For 2024, investors can expect improvements in businesses and potential NAV increases, with Castelnau aiming to compound growth over time through business development and strategic acquisitions, underpinned by a continuous improvement machine.
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