December 2017

Unitedcoatings Group is preparing for a new growth phase in the continuity of family control and entrepreneurial leadership

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November 2017

Arcaplanet, the leading pet care retail chain in Italy, has signed an agreement to join forces with Fortesan

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September 2017

Edmond de Rothschild Investment Partners acquires a majority stake in the specialized retail chain Sapore di Mare

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November 2016

Edmond de Rothschild Investment Partners invests in Italian pet products specialist retailer Fortesan

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September 2014

Winch Capital 3: a record fundraising for a new development / growth capital fund dedicated to SMEs

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October 2013

Edmond de Rothschild Investment Partners sells its shareholding in F.I.L.A. – Fabbrica Italiana Lapis e Affini S.p.A. to Palladio Finanziaria

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December 2012

Edmond de Rothschild Investment Partners and Fondo Italiano d’Investimento acquire a minority stake in Unitedcoatings Group

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December 2011

Fondo Italiano di Investimento si allea con Edmond de Rothschild

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Winch Capital 2, managed by Edmond de Rothschild Investment Partners, has invested in F.I.L.A., the international manufacturer of stationery products

Download "F.I.L.A. Press Release December 2010"

THE WINCH CAPITAL NEWSLETTER NO. 4

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February 15, 2010

EDMOND DE ROTHSCHILD INVESTMENT PARTNERS HAS WON AN AWARD IN PRIVATE EQUITY MAGAZINE’S “GRAND PRIX”

On February 15 2010, Edmond de Rothschild Investment Partners was awarded first prize in the Development Capital category in Private Equity Magazine’s “Grand Prix”.

“This award represents, of course, a remarkable token of recognition and encouragement for all our teams. Beyond recognition from other firms, our approach focuses on the loyalty and confidence of our investors and the partnerships we have been able to create with the management teams of companies held in the portfolio”, said Pierre-Michel Passy.

2009: A SIGNIFICANT CAPITAL RAISING AND EMBLEMATIC TRANSACTIONS
2009 provided confirmation of Edmond de Rothschild Investment Managers’ dominant position in the Development Capital segment with:

• our success in raising capital for Winch Capital 2, one of the largest Development Capital funds in France (EUR 250m). This took total assets run by Winch Capital 1 & 2 to EUR 430m. In a difficult period when private equity firms struggled to raise money from investors, this capital raising testifies to the resilience of the Capital development business in France. It is, above all, a token of renewed investor confidence in the team at Edmond de Rothschild Investment Partners which managed to close this new fund in less than 8 months. It also validates the investment strategy pursued by Winch Capital;
  
  
• The successful closing of Winch Capital’s investment period with (i) two new emblematic transactions, one in the ultimate holding company of Naturex, one of the top five natural ingredient companies in the world and the other in Groupe TWC, a B2B distributor of watches, costume jewellery and leather goods, and (ii) 2 further investments, FastBooking and Bergame (CEME). In all, Winch Capital made 21 investments between January 2006 and April 2009. The results of this investment period that ended in 2009 (with 94% of funding called up) were very positive. The Winch Capital portfolio also proved to be very robust in 2009 with no treasury incidents despite a very difficult economic environment. This was because SMEs benefited from strong balance sheets and the senior management teams were highly motivated by the high level of shareholdings in their companies.
  
  
• The 1990-2008 track record posted strong performance (Multiple of 2.3x and a gross IRR of 23.8%) and further successful divestments from previous funds in 2009 (Archiveco).
  

OUR INVESTMENT STRATEGY IS PAYING OFF
The Development Capital team is convinced that a successful strategy relies on 5 conditions:

• Stable companies with genuine growth projects;
• A high-quality proprietary deal flow;
• Significant stakes (30/40%);
• Strong non-financial contributions to help companies in the portfolio grow. This means systematically attending board meetings and significant involvement in specific fields, most notably in build-ups;
• A shared and rigorously contractual exit horizon with the majority shareholder.

THE WINCH CAPITAL NEWSLETTER NO. 3

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EUR 250M TARGET REACHED FOR FINAL CLOSING OF THE WINCH CAPITAL 2 PRIVATE EQUITY FUND

After a first closing on June 30 2009 for EUR 175m, Edmond de Rothschild Investment Partners is pleased to announce the final closing of its Winch Capital 2 development capital fund for EUR 250m.

In a difficult period when private equity firms are struggling to raise money from investors, this fund raising testifies to the resilience of the development capital segment in France. It is, above all, a token of renewed investor confidence in the team at Edmond de Rothschild Investment Partners which managed to raise EUR 250m in less than 8 months. Subscribers were particularly responsive to the team’s experience and stability and its ability to steer growth projects in the companies which have received funding.

For Pierre-Michel Passy, chairman of Edmond de Rothschild Investment Partners, “We were targeting a second closing around EUR 200m. In only 4 months, we went above the hard cap of EUR 250m. More institutionals were won over not only by the team and the relevance of its approach but also by the economic interest of capital development at a critical juncture when French SMEs need to strengthen their capital bases and finance their growth.”

For the final closing, the team managed to attract new, mainly French investors and predominantly funds of private equity funds. They included Fondinvest, AGF Private Equity, SGAM Private Equity and Dahlia. And major investors like Prédica and Crédit Mutuel Arkéa also subscribed to the closing. Given the strong demand, the LCF Rothschild Group did not increase its exposure which now represents less than 10% of the fund.

REMINDER OF WINCH CAPITAL 2’S INVESTMENT STRATEGY
Winch Capital 2, like its predecessor, seeks to partner entrepreneurs with a significant shareholding in their company in implementing their growth projects. The fund targets profitable companies with strong positions on their respective markets and sales of between EUR 20m and 250m. The fund will invest EUR 5-15m in its stakes through capital increases or owner buy-outs. By working in close association with entrepreneurs on optimising numerous operational aspects like hiring key managers, economising on purchases, governance and cash management, the fund will help companies achieve organic and/or external growth. For example, Winch Capital 1 companies posted average annual growth of 18.5% between 2006 and 2008 with half of that coming from acquisitions. One company in two in this portfolio made at least one acquisition during its association with Winch Capital. In an environment which will feature so many sector consolidation opportunities, robust SMEs, with the support of a fund like Winch Capital 2, are ideal platforms. They will be able to draw on moderate financial leverage to rapidly seize growth opportunities.

July 8, 2009

EDMOND DE ROTHSCHILD INVESTMENT PARTNERS COMPLETES THE FIRST CLOSING OF WINCH CAPITAL 2 FOR €175 MILLION, EXCEEDING THE ANNOUNCED OBJECTIVE

On June 30, 2009, Edmond de Rothschild Investment Partners completed the first closing of its Winch Capital 2 growth-capital fund for €175 million. This initial amount already exceeds the size of Winch Capital 1 (€165 million), raised in December 2005 by the same team.

Pierre-Michel Passy, Chairman of Edmond de Rothschild Investment Partners declared: “In a difficult period for the Private Equity industry, raising €175 million for this new fund within a mere three months of starting our sales initiatives testifies to the renewed confidence that investors place in our team and in its ability to support growth in the companies in its portfolios. The historical performance achieved by our Growth-Capital funds and our access to numerous investment opportunities were key factors in the success of this fund raising. We are now targeting a second closing in October 2009 at around €200 million and a final closing at the very start of 2010 for a maximum amount of €250 million.”

For this fund raising, the Winch Capital 2 team capitalised on several key success factors:

• The confirmed confidence of a French institutional subscriber base, including investors such as CNP, MACSF and Swiss Life who, already being present in the first generation fund, decided to participate in this new fund.
  
  
• Interest from prominent new investors including the Caisse des Dépôts (in the context of the France Investissement program), BNP Assurances, OFI Private Equity, and High Net Worth Individuals. The investor base will be broadened, particularly to include foreign investors, in the forthcoming closings.
  
  
• An experienced team whose members have between 12 and 20 years experience in the Private Equity industry and who have already worked through several investment cycles together. As members of the Boards of Directors of their portfolio companies, the members of the management team work very closely with top management.
  
  
• The choice by investors to target their available funds at the balanced and high-performance Growth-Capital segment. Strengthening the equity base of French SMEs and financing their projects for development makes Growth-Capital a key economic and social mechanism.
  

AN INVESTMENT STRATEGY SUCCESSFULLY IMPLEMENTED WITH WINCH CAPITAL
Like its predecessor, Winch Capital 2 will partner entrepreneurs who are very significant shareholders in their own companies, helping them to implement their development plans. The fund targets profitable companies, with a solid presence in their markets and revenues of between €20 million and €250 million. The fund will invest between €5 million and €15 million in each portfolio company.
By working in close association with the entrepreneur in many areas of organisational optimisation (recruitment of key managers, savings on procurement, governance, cash management), the fund will help enterprises to achieve new levels of organic growth and/or external growth.
As an example, the average annual growth of companies in the Winch Capital 1 portfolio was 18.5% between 2006 and 2008, of which half was achieved through acquisitions. One company in two in the portfolio made at least one acquisition during its period of association with Winch Capital.
In an environment where opportunities for sector consolidation will be numerous, solid SMEs, supported by a fund like Winch Capital 2 will form ideal platforms. Benefiting from a moderate level of financial leverage, these companies will be in a position to quickly seize opportunities for growth.