Core principle of Fund’s strategy: invest in companies which could emerge as leading players in their sectors at national or regional level
SMEs are inherently risky, but the fund will aim to protect its down-side risk through efficient structuring: (aligning interests through earn-out structures, financial incentives for founders and management to perform, efficient corporate governance etc.)
Focus on industry verticals/market segments with scope for consolidation, where Fund’s investee companies could emerge as a top 3 player, achieve critical mass (EBITDA over EUR 2.5mn) and generate interest from regional PE funds and strategic investors
The Fund management team would look to add value to the investee companies by providing hands-on support on strategy, business development initiatives (through add-on local and/or regional acquisitions), capital raising (debt, new equity rounds), guidance/advice on improving cost management and reporting systems, leveraging IT/technology, streamlining operational processes, helping to address senior recruitment issues
Prudent deployment of non-recourse acquisition finance, which in any case shall not exceed 50% of the transaction value and 3x pro-forma NFD/EBITDA
Four to five years target holding period to give our investees the time to achieve an optimal scale/development phase and position for exit
We look to leverage our investment teams’ extensive local professional networks and build a strong pool of industry experts to access and consult throughout the Fund’s life
Achieve a balanced portfolio across industries/companies, which should give economic exposure to both export markets and local demand/consumption.