Benchmark Consolidated is the private investment vehicle for Harry Spartels. It operates as a holding company, and is dedicated to compounding capital over time.
Operating Businesses
Investment Company
Founded
The company invests in both private and public equity.
The public exposure is predominantly in nano/micro capitalised businesses and seeks to acquire equity trading on 15%+ Free Cash Flow yields and 20%+ EBTDA yields, however investments will be made wherever value presents itself (for example, the group's most profitable investment to date was in Spotify Inc from 2022-2025). Earnings must be forecast to grow over the next 3-5 years.
The private equity portfolio, to date, has been in three start up investments. These businesses have all survived the 'valley of death', and are set to grow revenues and earnings considerably over the following years. Benchmark will consider making future private equity investments, however the hurdle is high when there are listed businesses generating high FCF returns accompanied with growth and governance.
Purchase a business with a strong balance sheet, run by an excellent management team, with the ability to grow earnings meaningfully over the medium term. Ideally, the business will be a leader in its market.
The greatest businesses in the world can be terrible investments. Don't overpay.
The strategy is consistent with the following quotes:
"The big money is not in the buying and the selling, but in the waiting."
- Charlie Munger
"There seems to be some perverse human characteristic that likes to make easy things difficult."
- Warren Buffett
That being said, there are two scenarios where selling may be required:
- The business appears to be extremely overvalued
- The thesis is broken, and the business has lost its advantage over its competitors
We’re always interested in hearing about new investment and partnership opportunities.