Approach

We are business builders, not financial engineers. We seek to change the trajectory of growth through strategic or operational transformation. We succeed through partnership with management and other stakeholders. In our “signature” deal-type, we purchase a majority stake and partner with the selling entrepreneur to build value together for in the next phase of growth.

CE Connection

We have a strong focus on cross-border expansion, whether organic or through acquisition. All we require is that there is a connection with Central Europe, either existing, or planned.

Structural Advantage

We seek companies that play an important role in their industry value-chain. Being critical to your customer is a key driver of success. This may be achieved, for example, through dominating a niche market, an installed base with recurring service revenues, or other situations where switching is difficult or costly.

Growth buyouts

We seek majority stakes in companies where we can achieve premium growth and we deploy prudent levels of debt. We will consider minority stakes on a selective basis, and will generally not do turnarounds or startups.

Auctions and Pricing Discipline

Paying a sensible price at entry is key to consistently achieving attractive returns. We only participate in auctions where we have a clear “edge”, usually driven by sector familiarity or joint pursuit with an MBI team. In those situations that we do participate, we are willing to pay a premium price for Structural Advantage or situations where we can change the trajectory of the business.

Sectors

We focus on seven sectors and have completed several investments in each, all characterized by premium “catch-up” growth (see Portfolio and Investment Focus).