Development/Growth Capital involves acquiring interests in established unlisted companies in order to support their business growth. Investments are typically held for three to five years, after which the fund seeks to realise its holding in order to achieve a significant return on the investment. Winch Capital 2 applies the following investment criteria and approach :
- Acquisition of significant holdings (10 to 49%)
- Investment in businesses with turnover between 5 and 250 million euro
- Investment on single transactions between 5 and 20 million euro
- Active involvement of the investment team through board positions
- The withdrawal/exit process is formalized by contract, in agreement with the majority shareholders
Edmond de Rothschild Investment Partners thus meets two needs often expressed by entrepreneurs:
- Financing the internal or external growth of their business
- Reorganizing the company’s capital structure, either by providing an exit for minority shareholders, a partial exit for majority shareholders or by bringing managers into the capital structure.
Transactions carried out by Edmond de Rothschild Investment Partners include capital increases, share acquisitions and Owner Buy Outs (OBOs).