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Patient capital for entrepreneurs, SMEs  and leading mid-market companies

Ever since establishing itself in Germany, typical Private Equity has been struggling to build a harmonious relationship with the German Mittelstand and family owned companies in the DACH region. The high percentage of family ownership and a lower reliance on financial sponsors require a different approach to elsewhere in Western Europe and the US. Many entrepreneurs do not want to sell their family companies to Private Equity or strategic buyers, but want to find true entrepreneurs and long-term partners who continue their life's work and take their company to the next generation. We are not a typical highly-levered LBO firm which thinks short-term, to flip and sell companies, but a long-standing strategic partner which is entrepreneurial minded, ESG driven and acts as a fundless sponsor to build long-term value together with our entrepreneurs and family investors. 

Our Strategy 

We believe the real value in German Private Equity for the next 10-15 years will be in unlocking the potential of family owned companies with succession issues as well as growth and expansion capital needs in the SME market segment. Together with our investment partners, we acquire significant equity stakes in SME companies with attractive valuations. We primarily fund the acquisitions with our own money alongside entrepreneurs, UHNWIs and Family Offices. Unlike typical Private Equity firms, we apply prudent leverage and pursue a "buy-hold-develop" strategy, in which we professionalize, grow and expand the business together with first class operating partners and our unique network. After every acquisition, we continue to work closely with the founders.  

Trees

Our Investment Criteria

Target Company Profile

  • Family Owned Business 

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  • No prior institutional capital 

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  • Niche market leader with defensible position 

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  • EUR 5m - 50m EBITDA

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  • Strong margins and free cash flows 

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  • Single digit revenue CAGR

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  • Opportunities to add operational, strategic and financial value 

Transaction Multiples

  • Acquisition multiple: 4 - 7x

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  • Leverage multiple: 1.5 - 3x

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  • Enterprise value: EUR 20 - 350m

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  • Seller rollover expected 

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  • Limited auction against other families or strategic investors 

Role Post Closing

  • Further professionalize the business 

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  • Recruit and develop top talent 

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  • Leverage our sector expertise with operating partners for growth 

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  • Implement strong Supervisory Board 

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  • Long-term investment focus with no strong exit deadlines

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