Carry the lessons from diligence into the years after closing.

What this means at Azari Capital

Azari Capital defines stewardship as the ongoing ownership work required to protect and improve an investment through governance, information, capital allocation and engagement with management.

Group operating experience can sometimes be a useful source of challenge or specialist perspective, provided portfolio companies are not turned into extensions of Azari operating businesses.

What we examine

The review focuses on keep key diligence findings visible in post-investment reporting; use governance rights for the decisions they were designed to govern; and review follow-on capital, acquisitions and refinancing as new investment decisions before capital is committed.

• Keep key diligence findings visible in post-investment reporting
• Use governance rights for the decisions they were designed to govern
• Review follow-on capital, acquisitions and refinancing as new investment decisions

Downside and failure modes

The risk is allowing the investment thesis to become stale while management and investors continue to report against assumptions that no longer reflect the business.

Governance and ownership

Ownership should preserve management accountability while ensuring investors receive the information necessary to fulfil their own responsibilities.

Where it connects to the Azari group

Operating knowledge from elsewhere in the Azari group can sharpen diligence, but it does not replace independent underwriting. Any relationship with another Azari company is assessed on its own economics, risks, governance and conflicts.

What a strong outcome looks like

A good stewardship outcome is a business that is stronger, better governed and less dependent on a favourable market or single individual.