Effective Strategy of Adjustment

The “Labyrinthine Pathis a pathway that allows us to mitigate risk, value it, and take advantage of it when it is deemed appropriate to do so. This means that our investment strategy is clear and sensible, and that it postulates investments made in context. We believe that there is no such thing as a good investment in absolute terms but only investments that are carried out when the time is ripe and when all the necessary conditions are met, so that we can take advantage of the opportunities that are being considered. Our chosen pathway also entails an active and flexible management that caters to uncertain and unpredictable business conditions.


Standing on the theoretical platform proposed by Professors Delvaux and Defrenne, the Founder has retained Six Pillars with the aim of designing a proprietary, original, and unique model. Those pillars act as a bridge between the concepts of “Partnership-Based Adherence” and “Constant Structure of Permanent Adjustment”.


Five concepts extracted from the aforementioned theoretical platform have been particularly useful when it came to laying out a pathway to risk mitigation: “Paradoxical Strategy”, “Management Gain”, “Decision-Making Function”, “Labyrinth of Time”, and “Recursive Modelling”.


Paradoxical Strategy


Strategic flexibility is a central concept of our overall business strategy. At Fikula Capital Management, we think that the projects linked to the opportunities selected in our consolidated operational portfolio must be planned in such a way as to allow midcourse corrections by considering different interim itineraries or different sequences of interim itineraries to reach our ultimate destination.


We see the projects in our overall business strategy as a series of strategic managerial options to be exercised or abandoned at different points in time. This business strategy depends on many assumptions whose level of uncertainty will decrease or disappear over time. One of the most important of those assumptions is the availability of highly competent partners and managers in our advisory company and at the helm of the concerned portfolio companies.


Management Gain


Our proprietary manner of dealing with the feeling of uncertainty – derived from the theoretical platform – will open our way to a smoother management of the interactions with our portfolio companies, especially when monitoring and decisions to stop a project are considered. 


Decision-Making Function


The resources of “Partnership-Based Adherence” allow a seamless acceptation of decisions throughout the whole organisation. Whether at board level or in the course of informal meetings with managers, those resources facilitate our entire decision-making process whenever necessary adjustments have to be made with the passage of time. The said resources are paramount when the decisions to be made affect the division of profits or concern the termination of an ailing project.


Labyrinth of Time


Fikula has developed its own view of the passage of time to such an extent that it has raised “Commitment to continuous research and innovation” at the level of a principle. That is why the concept of non-equilibrium over time – through its perturbations, turbulences and bifurcations – is embedded into our proprietary Labyrinthine Path.


Recursive Modelling


The theoretical platform that introduces the “Labyrinthine Path” entails that recursive choices be made while it is being applied. This means that the decision-makers must periodically carry out a deep analysis of the assumptions and forecasts of the model in order to reconcile them with the data extracted from the environment of the firm, both internally and externally.


Real Options Theory can be applied to quantitatively translate our business strategy because it is essentially a portfolio of real options. Our proprietary “Effective Strategy of Adjustment” easily lends itself to Real Options Theory since:


ü It includes a financial model


ü Uncertainties do exist


ü Those uncertainties do affect both the decisions and the results related to the financial model


ü Fikula Capital Management does have a strategic flexibility or options to make midcourse corrections


ü It is assumed that Management will be competent enough to make the decisions when it becomes optimal to do so





Our private equity firm is built around human identity and behavioural psychology.