Insight 3: Alignment Matters More Than Capital

Overview

Capital is widely available. True alignment is not. Many investment outcomes are ultimately shaped less by capital structure and more by the quality of alignment between shareholders, boards, and management teams.

Key Observations

• Misaligned incentives often surface during periods of stress rather than stability.

• Short-term financial optimisation can undermine long-term enterprise value.

• Trust, once eroded, is difficult to restore without structural change.

Our Perspective

We prioritise alignment at entry, not as an afterthought. This includes clarity around decision rights, risk sharing, time horizons, and expectations through different phases of the business cycle. Alignment does not eliminate disagreement, but it enables constructive resolution when it matters most.

Takeaway

Sustainable returns are built where capital, capability, and conviction are aligned over the long term.