Typical investment characteristics
Both majority and minority participations
We will consider any type of transaction, provided that appropriate corporate governance provisions are agreed, in line with best market practice
Support existing owner/management team
We prefer to back a strong existing team/owner rather than to rely on a successful change in leadership
Leveraged buy-out, growth capital and replacement capital
Typical transactions include
a. leveraged buy-outs, where we employ a prudent amount of bank financing. We like investments where the entrepreneur retains a significant stake in the company
b. growth equity, to support expansion and internationalisation organically and through M&A
Lead “Club Deals” or co-invest in larger transactions
Depending on size, we structure and lead the deal (inviting other investors when appropriate) or we invest in larger transactions managed by highly regarded financial sponsors
Unlikely to participate in auctions
We prefer to be involved in proprietary situations, where we can develop a meaningful relationship with the company. We like to work with the advisors to the entrepreneurs and are open to involving them in the deal, if they so wish
Target exit in 4 or 5 years
We normally seek a liquidity event within 5 years but will reinvest in the company, usually with a different shareholder structure, when deal circumstances allow
Typical company characteristics
EBITDA in the €500K-€3M range
We do not invest in start-up and early-stage companies. We lead investments in companies with EBITDA in the €500K-€3M range and team up with other equity sponsors for larger transactions
Strong competitive position or leadership position in a niche market
We prefer B2B or B2B2C companies in high growth sectors, usually - but not exclusively – in services rather than manufacturing
Sustained growth prospects and good scalability
We favour companies with
a. potential to grow organically or through M&A and international expansion
b. a large proportion of revenues recurring year-on-year
c. low client concentration
High operating margins and low capital expenditures
We are typically not the best partner for low margin, high volume businesses that require substantial capital expenditures
Positive cash generation
We like businesses with negative working capital, high cash conversion and low existing indebtedness
Preference for EMEA location
We like to be able to interact easily with companies operating in markets we know well. However, we will consider investing outside EMEA with the right partners