All private equity firms tend to have characteristics that distinguish themselves from their peers. Most use some balanced combination of investment criteria for their portfolio selection process, such as high margins, high caliber management, recurring revenue, etc. At Jones Equity Partners, we see these various combinations as basic necessities in any investment we would consider.
As opportunists, we focus on the characteristics of the transaction and, to a lesser degree, marginal differences that may occur in a quality business. Jones Equity Partners sees enormous value creation through the methodical evaluation of the elements that create a good deal. Whether it is some sort of arbitrage, a liquidity issue, financial distress, or better use scenario, catalysts such as these lead to enormous value creation on the entry alone. Coupling this strategy with a long-term focus of buying quality companies, we feel leads to a return on investment that is superior to that of traditional private equity firms that focus on fundamentals alone.