LSE Focal Point Podcast Mathew Masters - CEO of Caledonia Investments
Nov 13, 2025
Mathew Masters, CEO of Caledonia Investments, shares insights from nearly two decades in finance. He discusses his journey from building surveying to corporate finance, revealing how diligence opened doors to private equity. Mathew explains Caledonia's low-leverage approach to acquisitions, emphasizing long-term, understandable investments. He touches on the importance of patience and research in sourcing niche assets. Career advice for students includes adaptability in a fast-evolving job market and enjoying the process of work.
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Unexpected Path Into Investing
- Mathew Masters moved from a Building Surveying degree to accounting and corporate finance because he discovered investing in his early 20s.
- A secondment to a private equity firm opened the door to joining Caledonia where he has worked for nearly 20 years.
A Hybrid Long-Term Investment Model
- Caledonia is a hybrid investment trust with a £3bn balance sheet and half the shares family-owned.
- It runs three long-term investment pools: quoted companies, private equity funds (US/China), and wholly owned businesses.
Low Leverage To Manage Downside Risk
- Caledonia uses low leverage when buying companies, typically around 2x EBITDA versus higher levels used elsewhere.
- They prefer low debt to limit risk because they aim to own businesses for long periods and weather downturns.
