Legion Partners Serves Select Institutional and High Net Worth Clients.
Legion Partners was established to meet the long-term needs of institutional investors. Recognizing the long-term investment horizon of these investors, we have carefully designed our business model and key contractual terms to provide strong alignment with our investors and to create a results-based culture focused on generating optimal long-term performance. We believe that the stable capital based provided by our institutional partners (CalSTRS is our seed investor and has invested over $250 million with us since inception) is one of our competitive advantages and is a critical component of our long-term orientation.
Our investment process is intricately driven by two primary functions: security selection and professional shareholder activism.
Legion Partners conducts original research and deep due diligence as part of our research, security selection, investment, and engagement process. Our ultimate goal is to gain superior insights regarding a company’s business, valuation, management, board quality, governance, and culture. Our private equity approach to investing in public markets aligns well with and helps support the interests of long-term shareholders. Our intense focus on due diligence allows us to understand the fundamental drivers of companies’ businesses and develop an independent thesis for key areas of improvement, allowing us to be a credible voice for change where necessary.
We like to work behind the scenes with management teams and Boards to improve corporate governance, enhance long-term performance (with a focus on capital efficiency and ROIC) and significantly increase shareholder value for the long-term. Given the fact that often our institutional client base will hold positions indefinitely, we believe it is important to help companies improve their governance and capital allocation discipline in a manner that will pay dividends (pun intended) for long-term owners even long after Legion Partners has exited its position.
We Are Deep Value, Long-Term Oriented Active Investors
Activism That Drives Value
Our corporate governance, or activist, style of investing utilizes deep value security selection, a long-term oriented ownership horizon, and active engagement or event-driven catalyst to ensure added value for the benefit and interests of longer-term shareholders. Our activist strategies may involve obtaining representation on a portfolio company’s board of directors or implementing various efforts to impact a portfolio company’s policies, leadership or strategic direction in pursuit of superior long-term performance.
Tapping Potential with Proper Oversight
We believe that poor governance and ineffective corporate leadership can lead to considerable destruction of long-term value. Appropriate corporate governance and proper oversight from long-term oriented equity owners can effectively protect value by lowering risk and can act as a major catalyst to reverse value destruction.
Aligning with Long-Term Goals
Responsible activism has historically been able to unlock significant shareholder value and generate strong, consistent and uncorrelated returns for investors. Our private equity approach to investing in public markets is distinctly efficient and well aligned with the interests of long-term shareholders. In addition, our extensive due diligence on each target portfolio company helps to mitigate overall investment risk and creates a more beneficial risk profile for our investors.