Stone Point Capital’s “Elephant Process” is the methodology through which we identify a specific sector of financial services to target for investment, deeply research the space, meet and develop relationships with management teams and identify actionable investment opportunities. It is a targeted, proactive, repeatable process that we apply to more than forty sectors of financial services and that is employed by every member of our investment team.
Many of the investments made by the Trident Funds have originated as a result of the Elephant Process, which combines “top down” (evaluating and selecting sectors based on carefully considered investment theses) and “bottom up” (assigning a team of investment professionals to get to know, at a granular level, the leading companies and managers in these sectors) approaches to identifying investment opportunities.
Identifying attractive opportunities through this targeted process can take many years, but we believe that it enables us to produce high quality, proprietary investment opportunities in sectors where we face limited competition. As a result of this process, more than three-quarters of the investments made by the Trident Funds since 1999 have been internally generated.