Under the auspices of Bure’s business model, a target scenario for the portfolio has been defined to balance the portfolio from the point of view of risk. The chart to the right provides a schematic illustration of how Bure’s portfolio could be composed.
The three categories are:
Target-returning companies – meet Bure’s basic investment criteria with a target IRR of 12 per cent.
Cash-generating companies – often companies with stable business models and direct returns.
Companies with considerable potential returns – often have greater operational risk (e.g. technological or market risk).