"What we look for most — what our portfolio is most populated with — is what we call 'capital light compounders,'" Stannard-Stockton said. "Businesses that are able to grow without reinvesting a lot of cash into their business.""The business just relentlessly is growing the top line in the double-digits for many years," Stannard-Stockton said.
"Todd has coined a phrase here: idiosyncratic business," said Stannard-Stockton. "I think it really gets at the sorts of businesses that we look for and why things like peer multiples and traditional market multiples is really irrelevant to the work that we do." This notion allows the pair to view potential purchases differently than many industry-specific analysts might, leaving potential overlooked opportunities ripe for the picking.
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