Investment strategy
Disciplined and deep value investment approach in majority/controlling minority equity stakes in pan-European medium-sized companies with an equity ticket size €10 - 50m
DVC Partners’ 4-pillar investment strategy generates consistent deal flow across cycles and optimizes risk mitigation.
Unsustainable Capital Structure
- Relaunching good businesses with temporary financial challenges
- At least 1/3 of invested capital in the form of capital increase to facilitate debt restructuring
P&L and FCF Underperformance
- Transforming business models into being more sustainable and performing
- Clear focus on finding the right balance between high margins and positive FCF generation
Structural Changes
- Complex carve-outs of underperforming and / or non-core assets
- Strategy shifts causing misalignment of shareholder’s interests
Broad Market Dislocations
- Market dynamics exposing companies to financial distress, declining markets, or profitability issues
- Perceived sector cyclicality creates “spill-over” to sub-segments which are less susceptible to cycles
Value Add Section
TARGET IDENTIFICATION
Using our vast network and reputation to find the best targets.
Our average annual deal flow has been 370 opportunities in our core regions over the last decade.
DEAL NEGOTIATION
Our extensive experience allows us to create value on the buy by offering good solutions in complex situations.
Management of risk through staggered capital injections over time based on key milestones.
DELIVERING UPSIDE
Our operational and transactional know-how helps to grow the target significantly.
Hands-on approach focused on unlocking value and improving profitability.
EXIT
Identification and evaluation of exit strategies: IPO, strategic buyer, secondary sale, management buy-out.
Developing equity story.
