Guiding Principles
Phi · los · o · phy
Theory or attitude held by a person, group, organization that acts as a guiding principle for behavior.
The partners and investors of AEP seek to find essential companies that provide a good and/or service whose existance to a market has secured the company’s continued success, which we recognize as its Darwinian Value. Having survived their financial, operational, and cultural evolution over time, these target companies are poised to fully reach their full potential value through a combination of strategic and tactical elements.
AEP works to understand the management and leadership dynamic of its investments, their operational trajectory (what they are doing now and what they are capable of), and their optimal strategic positioning, and put these elements into an investment thesis, including target growth rate, expected operating margins, appropriate capital structure, liquidity/exit plan, to deliver superior investment returns on capital for its investment and financial partners.
The Key Success Factors embedded in the guiding principles of AEP are centered around the following:
- Company’s “Darwin” Effect
- Leadership Recognition
- Talent Assessment/Management/Recruiting
- Culture Recognition & Definition
- Strategic Planning & Plan Buy-In
- Professional Management Systems
- Data Forward/KPI Guidance
- Financial Discipline
- Business Development/Growth Bias
- Sales Cycle Development
- Cost of Capital/Cap Structure Strategy
- Investor Engagement
- Management Investment & Equity Incentive