Lantern views its focus on middle market opportunities that fit our DTCsm formula as an “all weather strategy,” Deep value, Turnaround opportunities, for Control or influence”). Central to our investment strategy is the objective to protect capital by investing at a point of deep value. We identify assets or cash flow to mitigate against capital loss. The firm benefits from the simple reality that poor management and financial missteps are generally non-correlated to the “weather” of the prevailing economic cycle. What makes our strategy so compelling:
- There is no reliance on distressed debt cycles to drive opportunities
- Deep value can be achieved by providing solutions to resolve the problems created through operational underperformance and financial mismanagement
- We are not risking capital by paying high multiples in hopes of growing revenue to generate returns
- We seek investments where initial capital has taken a substantial loss thereby affording the firm the opportunity to sell at a multiple often inside of the initial capital’s original basis
Many investment firms rely on strategies that require them to predict macro market dynamics and correctly time both entry and exit. Lantern’s strategy is not predicated on predicting or timing such events.