Pavo Capital Group’s philosophy is guided by the fundamental devotion to enhance and protect the value of investors’ investments through stringent identification of compelling and strategic investment opportunities, engaging, enhancing and unlocking the potential of the target investments to achieve sustainable development, incorporating ESG (environmental, social and governance) into all of its investment strategies.
Pavo Capital Group overlays its services and capabilities with the three core values: Integrity; Fairness; and Professionalism. It strives to achieve superior returns for investors but in a responsible and sustainable manner.
Our fundamental approach in all our endeavors is to put the interests of our investors first and to ensure that their objectives are met and fulfilled. We value the relationships cultivated with them, our staff and all counterparties that we deal with.
In investment management, our top priority is to ensure investors’ assets are prudently managed and invested into companies that are able to generate sustainable and attractive returns and to achieve that, we pursue a fundamental value approach which is in line with our core values of professionalism and targeted entrepreneurship.
Our active involvement approach enables us to create value through securing value added deals and through engaging the management (entrepreneurial coaching) of our target investment companies.
We aim to make our investments compliant with ESG criteria over time and commit to the highest fiduciary standards.
Investment Strategy and Process on Privatizations
One of our primary focus is on the privatization of SOEs in Vietnam thus targeting SOEs that embrace the following value drivers:
- A foundation for implementation of sound corporate governance;
- Founders and key management team which we are comfortable to work with and which demonstrate a willingness to improve and change;
- An outstanding track record (good earnings, high ROE potential, healthy level of acceptable gearing and strong cash flows);
- A management team driven and motivated to achieve their respective corporate missions coupled with a passion for growing their businesses;
Our target companies are in diverse sectors and many have yet to apply international best practices in the areas of corporate governance and management. Many still hold multiple investments in unrelated businesses and have significant potential for rationalization to reduce costs, increase revenues and refocus on their core businesses. Our restructuring team will help to streamline processes; professionalize the marketing activities; improve code of business conducts by introducing efficient board structures; including introduction of improved reporting, management information systems and state-of-the-art technology.
Our post-investment approach is to partner with our investee companies through our active involvement to institute the necessary changes and developments to enable them to reach their full potential and be globally competitive.
Once our investee companies have successfully reached an acceptable level of maturity as reflected in their enhanced values, we will work to realize the valuations by planning timely exits, whether it be via listing on stock markets, direct trade sales to strategic or to financial investors, or asset sales.