Our style is to operate in partnership with management for a period of up to 7 years in order to achieve a significant increase in the value of the investment by our funds. Further information can be found under private equity.

As a guide we are interested in businesses with revenues between €30m and €250m. We have no sector preference but we look for profitable businesses with organic growth potential or the ability to grow by acquisition. See Investments for examples of transactions completed by our investment team.

We support fast growing companies in a variety of situations: Management Buy-Out/Buy-In; Expansion Capital; Succession and Spin-Offs. 

Prior to making an investment we investigate the business and its markets as well as working with management to develop a better understanding of what is required to make the company develop its markets and its products or services.

Once the deal is closed we maintain a constant dialogue with management through an executive board and we get involved with a variety of important matters which may include the following.

• Helping to refine the company`s strategy particularly in respect of international development where we can use our knowledge and contacts.
  
• Assisting with recruiting additional management where required.
  
• Appointing non-executive directors with specific and relevant experience which will help business development.
  
• Sourcing, reviewing and negotiating to acquire strategic acquisitions where appropriate.
  
• Reviewing monthly financial information and assisting with optimising the corporate structure for both financial stability and investor returns.
  
• Ensuring that key managers are properly rewarded for their hard work in implementing the agreed strategy and have a capital gain incentive to build the value of the company. This is what we mean by partnership.

Whilst a member of our team normally sits on the board of the company, it remains the clear responsibility of the company`s management to run the business.

An example illustrates some of this:
In 2000 Thorsten Kurzrock called us to say he was the Managing Director of a local cleaning and security business called Nobis. It was owned by an entrepreneur with significant interests outside business. Thorsten Kurzrock wanted to talk about buying the company and, whilst he had heard of Private Equity and the concept of a management buy-out, he did not know how it worked. We asked about his ideas for building the business and we liked the answers we heard. After quickly learning more about the market we decided to back Thorsten Kurzrock and two other managers. Negotiations were opened with the owner and he eventually agreed to sell if the price was attractive. A price was agreed and, because he wanted to stay in contact with the company he created, he kept a small percentage of the equity. We were involved for five years – making the business even more professional, recruiting a non-executive chairman from our network, defining an ambitious strategy which the management implemented and making three acquisitions of smaller businesses to increase geographic coverage. In 2005, ISS, a large Danish conglomerate, approached us to make an offer. They wanted to buy the business and moreover they wanted the management team to boost their German operations. Thorsten Kurzrock eventually left ISS and despite now being a man of independent means, is keen to get involved in another business alongside us.

• For further details see Nobis in Investments.