Inverness’ investment philosophy is grounded in the following fundamental principles:

Contrarian Approach
Inverness’ general strategy is to make equity investments in industries that we believe are attractively valued due to industry and/or capital market dislocations. Broadly speaking, Inverness invests in companies that it believes have solid base cash flows and asset values, but whose profitability and market valuations are temporarily depressed, including financially distressed and other special situations.

Platform Investment Strategy
Inverness often invests in platform businesses with strong management teams and helps them prudently deploy capital in organic growth opportunities and value-accretive strategic, follow-on acquisitions. These follow-on investments, coupled with organic growth, enable the business to generate financial and operational efficiencies.

Partnership with Management
Inverness believes that it is important to establish a close working relationship with the management team of a prospective acquisition target long before an investment is completed. It is Inverness’ experience that significant ownership by management aligns the interests of Inverness and management and encourages superior performance.

Conservative Capital Structures
Inverness is primarily focused on superior, risk-adjusted capital appreciation for its principals’ and investors’ capital over the longer term. As such, Inverness uses leverage cautiously, generally capitalizing initial platform investments predominantly with equity, leaving ample flexibility for growth, follow-on acquisitions and potential economic disruptions.

Disciplined, Value Investors
Inverness believes that in order to achieve superior risk-adjusted returns it is crucial to remain strictly disciplined with regards to valuation. Inverness enters investments with strong price discipline and structural protections.