Our investment strategy
We invest alongside our business partners, including private equity houses, entrepreneurs, families, and corporations, to achieve superior long-term capital appreciation while maintaining a relatively prudent approach to risk.
We invest in a variety of equity and equity-related investments, which primarily originate through the Rothschild Group network. We usually take significant minority positions and do not seek to lead in control situations.
There are three main elements to our investment strategy:
We approach investment opportunities with a high degree of flexibility and invest in multiple layers of the capital structure.
We have the flexibility to invest in straight equity or equity-linked securities including preferred/senior equity, mezzanine and convertible debt. Our appetite is driven by the quality of the investment in terms of its risk-adjusted returns.
We focus on several types of deals including:
participation in primary or secondary buyouts
growth and replacement capital to fund development projects or to help companies optimise their capital structure
balance sheet restructuring that does not involve a heavy operational turnaround.
We focus our resources on profitable and established companies that are leaders in their market segments and that operate proven business models.
Our key investment yardsticks include:
defensibility – robust barriers to entry
earnings predictability – mission critical businesses with unit volume visibility
financial track record – demonstrated track record of free cash flow generation and ability to earn attractive return on capital
We invest in a wide range of industry sectors, but generally focus on industries that enjoy superior long-term growth potential. We also concentrate on those sectors where we can draw on Rothschild's broad expertise and vast network of specialist industry advisers and experienced management executives.
We typically focus on mid-market companies with a Total Enterprise Value of €75 to €750 million.