Capital that is allocated for the decade ahead, not the next reporting period.

We underwrite businesses on the earnings they produce in ordinary conditions, not on their best year. Capital structures are sized so that a downturn is an operating inconvenience rather than a solvency event, and undrawn capacity is treated as a use of capital in its own right.

Returns are generated by owning good businesses and reinvesting inside them at durable rates, rather than by financial engineering or repeated transactions. Every intermediate sale leaks value through fees, taxes and disruption, so we avoid them.

Capital has four competing uses: reinvestment inside existing holdings, new business platforms, balance sheet strength and reserves. Reinvestment is evaluated against the business's needs and the operating team's ability to execute; new platforms are assessed on earnings in ordinary conditions rather than peak performance.

Mid-cycle underwriting means considering a business through both stronger and weaker trading conditions. Keeping reserves and financing capacity available supports flexibility when markets change, rather than requiring every available unit of capital to be invested immediately.

Investors receive periodic reporting covering portfolio performance, capital deployed, operating developments inside each holding and the outlook for the sectors we are exposed to. We report on the same basis we underwrite, so results are always comparable with what we told you we expected.

For investor relations, allocation questions or reporting requests, write to hello@lmhe.co.com.