Permanent capital allows us to view our investments through a long-term lens, providing competitive advantages both in terms of risk-adjusted returns to our investors and our ability to be a stable, reliable partner providing strategic and capital support as needed.
Tiptree’s senior management’s significant equity ownership provides a clear alignment of interests with shareholders. When analyzing potential investments we identify those companies which have entrepreneurial and experienced management.
We evaluate our performance primarily by the comparison of our shareholders' long-term return on capital (change in book value plus dividends paid), to alternative investment options and major market indices, and we focus on Adjusted EBITDA as a measure of periodic performance. A reconciliation of Adjusted EBITDA to reported GAAP Net Income can be found in our recent earnings release.
Tiptree is a diversified holding company that invests primarily in control interests of operating businesses. We currently own control interests in seven operating businesses and continue to explore further acquisition opportunities.