About JLL Partners | Our Investment Philosophy

While we know of no magic formula which works for all companies in all circumstances, we do believe that certain key principles, consistently applied, can lead to superior private equity investment performance over time. We find that these principles are as important to JLL as they are to our management team partners.

We Employ Leverage Sensibly. Leverage can be an attractive way to enhance equity returns. Too much debt, however, is not only inherently risky but can limit management©s flexibility in running its business.

JLL believes in employing leverage prudently. We help design and implement a sound capital structure for our portfolio companies, allowing them to remain competitive, make appropriate capital expenditures, and pursue growth opportunities. We prefer to rely on strong management, rather than financial engineering, to increase the intrinsic value of the companies in which we invest.

We are Committed to Growth. JLL seeks to invest in companies that have the potential to grow both organically and through acquisition. We expect the companies we invest in — even if they are initially troubled — to pursue an aggressive growth plan once any existing problems are corrected. Such growth might be achieved through capacity expansion, new product introduction, development of new markets and, perhaps most importantly, the acquisition of related companies. In fact, JLL portfolio companies have, in the aggregate, made more than 50 add-on acquisitions during their involvement with us.

We Seek to Optimize Realization on Our Investments. We have no predetermined time frame or preferred method for exiting our investments. Rather, along with management, we concentrate first and foremost on building value. However, in the course of improving and growing a company, there often comes a logical and obvious point to realize the value we have jointly created. In such instances, we might find a buyer for the company or perhaps look to sell our shares in a secondary offering in the public markets. In other cases, industry dynamics may compel an exit. Finally, we always remain opportunistic. Our portfolio companies may occasionally attract unsolicited offers, which we, along with management, will evaluate and consider.