
The very nature of private equity equates to increased risk for investors. Atlantic’s investors pay it to take greater risks with their capital and expect greater returns. Therefore, Atlantic seeks to make investments that outperform the returns investors get in most other asset classes. Atlantic’s investment process measures risk/return and leads Atlantic to invest in opportunities where a return of at least 2x-invested capital can be achieved.
Velocity of Return
Good company selection and proper due diligence are crucial to the success of an investment, but timing is of equal importance to Atlantic. As part of Atlantic’s investment process, strong consideration is given the likely exit opportunities and the time horizon involved. Often times, a strong performing portfolio company cannot be monetized due to outside factors affecting value such as the receptivity of the public markets, interest rates and overall economic conditions. Atlantic pays particular attention to these and other factors that affect Atlantic’s ability to monetize its investment and will always err on the side of taking profits off the table rather than trying to get the last nickel.
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