Investment Goals

Braxton Group Investment Goals

Our long-term goal is to achieve a compound 12% growth in cash flows from operations on a per share basis. This may not occur consistently each year, but we believe we can achieve this objective over the longer term by continuing to focus on four key operating strategies:

• Establish ourselves as an asset manager of choice for investors seeking exposure to infrastructure type assets. As we continue to increase the number of assets we manage for others through funds, co-investments or public securities, we enhance our returns through performance-based management fees, diversify our risk and broaden the scale of transactions that we can undertake.

• Own, manage and build high quality long-life cash generating assets that require minimal sustaining capital and have some form of barrier to entry, which as a result favour these assets to appreciate in value. Today we are primarily focussed on property, power and infrastructure assets.

• Maximize the value of existing operations by actively managing our assets to create operating efficiencies, lower our cost of capital and enhance cash flows. Given that our assets generally require high initial capital investment, have relatively low variable costs and can be leveraged on a low risk basis, even a small increase in top-line performance results in a much higher percentage contribution to the bottom line.

• Base our investment decisions on disciplined return-on capital
metrics, measured by their impact to the company.