15 utilise ESG rankings to judge investment managers. Index providers use ESG factors in establishing indices. Investors use ESG ratings to enhance their investment valuation and decision processes. For Brookstreet, we reflected not only on the ESG ratings of existing business models but also on the technologies that can enhance the ESG thematic. How do you blend ESG with technology? In the middle of an imperfect societal structural reform, the role and impact on technology is growing. The very evolution of humankind is dominated by technological leaps which have changed the face of the modern world - from wheels to cars, from steam to trains, from boats to planes, from electricity to the internet. Every business and every citizen is disrupted by technologies of automation, interactive communication and digitisation. The next industrial revolution and human evolution is dawning upon the world in unforeseeable ways as we increasingly rely on NanoTech, Artificial Intelligence, Big Data, the Internet of Things and Digitisation of our world - from monetary transactions to human interactions. The impact of Technology on Environment, Society and Governing of our institutions is changing our world. For example, nano-coating can make a ship go faster by reducing drift but also, more importantly, save fuel and pollution. Similarly, Internet of Things (IoT) technologies for smart buildings or smart cities, can make a difference in the environment, as well as the quality of life for employees and citizens. Brookstreet coined the term “ESG Technologies” at the BVCA events of 2021 to describe this niche. We spearhead investments in the niche ESG Tech thematic including so far, NanoTech materials, IOT/AI software and hardware, robotics and cybersecurity. To separate the wheat from the chaff, we do not invest in concepts, and we do not take MVP risk. We come in at the growth stage when there is a product that sells, a business model that works (even with tweaks) and clear market demand. We then help the founders and managers to build a sustainable business and scale it up for the next investor or buyer. We avoid large companies as they are typically already in a fixed mindset. We also avoid markets with overhyped valuations. In the days of remote working, talent is global. We screen hundreds of transactions to find the right mix of product, price and people and help them to integrate Diversity, Inclusion, and Talent management in their processes. How do you integrate Diversity, Inclusion and Talent Management in your processes? At the time of riding the first wave of the pandemic, every owner and manager faced the challenge to make extremely difficult business decisions amidst a global panic. How do you lead during a crisis? One of my professors at Harvard Business School used to run a leadership exercise by a simulation of a journey to the North Pole. He used to ask: “Who are the people you can trust? Who do you need to take in this adventure to the unknown with limited space onboard? What are the complementary skills required to survive the journey?” These are exactly, the same questions we faced as a fund manager with a range of investments across countries, industries and cultures. During a meeting of minds with Lucia Labuzikova, founder of Labuzik Institute, we discussed the well-known controversial statistic that 70% of international M&A deals fail. They fail not because of technical or managerial competence, but cultural integration. How do you make sure that the private equity industry can learn from intercultural and inter-personal “soft skills”? Here, I will pass the torch to Lucia. Lucia, please expand on how you utilise Human Due Diligence Assessments at Brookstreet? Brookstreet used the pandemic to understand how to strengthen the talents of their team and complementary skillsets. In doing so, we worked for months looking into enhancing every aspect of their transactional lifecycle. We utilised human capital due diligence assessments early in their Origination process, where they first meet founders and managers of prospect investments. We then looked for the right Portfolio Managers to cover the asset and build a rapport with the founders and managers while interacting as Board Members. Internally, we review everyone in the firm, from Analysts to Partners, to understand how they can work together and explore their collective strengths; for example, matching people with Ideation talent with those of high execution strength or supporting Sales Managers with follow up processes. It is of note that some of the tools we work with are used by 90% of the Fortune 500 and over 28 million people report that are 6x as engaged in their work as a result. However, we do not stick with one provider or method. We utilise an eclectic blend of tools and techniques to offer Brookstreet assets and employees tailored services that smooth their relationships and boost their productivity. They learn to work efficiently, effectively, calmly and make “alpha returns”. What are your plans for Brookstreet in 2022 and beyond? Brookstreet seeks out global asymmetric opportunities in undercapitalised markets and we currently benefit from a wave of investments in the European early-stage venture ecosystem (feeding us next stage, growth capital deals). We currently focus on investing in postCOVID ESG Technologies and planning exits with phenomenal returns. We will grow our platform 5x this year and expanded our team appropriately. On a personal level, working hand-in-hand with Lucia brought not only success to the firm but to my life too. We are pleased to announce that we plan to get married soon. THE CEO INTERVIEW
RkJQdWJsaXNoZXIy Mjk3Mzkz