Energy markets are dynamic. Public markets can be volatile – driven by short-term events rather than long-term fundamentals.
Azimuth focuses on long-term, sustainable value creation.
- Alignment of goals with our portfolio companies and limited partners establishes a foundation for success.
- We add value by working closely with the skilled leadership teams of our portfolio companies as strategic advisors, as active Board members, and as financial partners.
We offer portfolio companies forward-thinking perspectives on key energy sector and investment trends. Azimuth obtains capital commitments from sophisticated long-term investors around the world. Our limited partners include some of the world’s preeminent pension funds, university endowments, insurance companies, banks, and family offices.
Our investment strategy is to partner with leading management teams targeting upstream conventional and unconventional crude oil and natural gas exploration, development and acquisition opportunities. In addition, approximately one-quarter of our capital is directed to broader energy initiatives including infrastructure, services and technologies that support the upstream sector.
Our portfolio companies are generally private, early stage businesses that provide an opportunity for substantial growth in size and value. In addition to providing capital, Azimuth adds value to its investments through board representation and mentoring of management teams.
From a geographic perspective, the majority of Azimuth’s investments are based in Canada, with a more selective allocation to international opportunities.
We have established the following fundamental investment principles:
- Invest in skilled management teams that have a track record of value creation, combined with superior technical expertise and vision;
- Strategies must be differentiated, market relevant, and capable of generating globally competitive risk-adjusted rates of return;
- At inception, capitalize business plans to achieve dual track relevance – compelling future opportunities for both strategic acquirers and the public markets.
Azimuth tends to be a lead and inception investor. Proactive, direct engagement with prospective management teams leads to approximately 90 percent of our fund investments. Corporate governance is important – it must be aligned with capital at risk. Azimuth partners are active, engaged directors of our portfolio companies. In addition, we encourage strong independent directors, which has been demonstrated to add value throughout the investment cycle.
Our investments are generally structured as staged equity commitments – capital is funded as business plans mature and are derisked. We do not leverage fund investments. Where by commitments are staged and additional capital is provided as business plans mature and are de-risked. Azimuth’s innovative co-investment program enable our limited partners to participate in substantial opportunities while providing capital to enhance the growth prospects of our portfolio companies.