WINCH CAPITAL 3 takes a minority stake in SFAM to pursue an ambitious growth plan

Private Equity - 1/28/2016

WINCH Capital 3, managed by Edmond de Rothschild Investment Partners, has taken a minority stake in SFAM Group (“SFAM”)

Created in 1999 by Mr Sadri Fegaier, SFAM is one of one of the main wholesale brokers of affinity insurance products, with a special focus on the fast-growing market for mobile products. The Group designs, markets and manages a range of premium insurance solutions for mobile phones and multimedia products with extended warranties. With its solid network of over 1,000 distribution partners, SFAM has been able to achieve 69% average annual growth in its business over the last 5 years1 and insure over one million customers since its creation.

With its headquarters in Romans-sur-Isère (French Department No. 26), the Group is targeting over €135 million in gross turnover in 2016. To support this significant growth, SFAM expects to hire 150 people in the next 12 months. This should allow the Group to pursue the development and diversification of its distributor network in France and abroad (particularly in Spain and Belgium) and to strengthen its presence in market segments such as optical insurance or loyalty services.

To boost this rapid development, Sadri Fegaier, President and founder of the Group, decided to join forces with Edmond de Rothschild Investment Partners through its WINCH Capital 3 fund.

"I am delighted about the equity investment taken by the WINCH Capital 3 investment fund managed by Edmond de Rothschild Investment Partners. This partnership will support the group's exponential growth that has now exceeded 1,800% over the last five years1 with over 200 million in gross turnover on the horizon for 2017. This is clear recognition of the reliability and service quality that SFAM has been able to develop in the market of affinity insurance products. SFAM has shown that it is possible to innovate and offer reliable warranties in this market. It is important for me to be associated with a distinguished partner who shares the same values as SFAM: service quality and customer satisfaction. The equity investment by Edmond de Rothschild Investment Partners will also allow us to seize external growth opportunities," states Sadri Fegaier, President and founder of SFAM.

"SFAM is a company that is undergoing quick, yet controlled growth. It has built its offers around service and added value for its customers and partners. We share Sadri Fegaier's great ambitions for the Group and are very glad to support him in this new phase of development," explains Sylvain Charignon, Partner at Edmond de Rothschild Investment Partners.

About Edmond de Rothschild Investment Partners

Edmond de Rothschild Investment Partners is a reference in unlisted minority investing in development capital and venture capital. Established in France, the company has deployed investment teams in Paris, Lyon, Shanghai and Milan (through its exclusive partnership with Mast Capital). The management company, with a staff of 41 including 29 investment professionals, has over €1.2 billion under management.

The Mid Cap Development Capital-Transmission team, the WINCH Capital franchise, benefits from the experience of 11 investment professionals in Paris and 4 persons in Milan through its exclusive partnership with Mast Capital Partners. The Winch Capital team has raised €715 million since 2005 and is currently in the investment phase of the WINCH Capital 3 fund (€300 million raised in 2014). The fund aims to meet the challenges of growth and shareholder restructuring of French and Italian mid-sized companies. Investment per transaction ranges from €7 million to €30 million.

Edmond de Rothschild Investment Partners is a company of the Edmond de Rothschild Group.

It should be noted that Winch Capital 3 FPCI is a professional capital investment fund benefiting from simplified procedures. Accordingly, it is not subject to approval by the Autorité des Marchés Financiers and may apply certain exemptions to the rules of investment.

Winch Capital 3 FPCI mainly invests in unlisted companies that present particular risks including the risk of capital loss, risks associated with discretionary management and liquidity risks.
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About the SFAM Development Group and its structures

Created in 1999 and established in Romans-sur-Isère, SFAM is focused on the fields of telephony and multimedia; it started its business of marketing its insurance products at its own points of sale. In 2010, SFAM was the first insurance broker to launch its products on the national market with its PREMIUM insurance (cover for loss and damages from all causes) while including a service for recycling smartphones. Supported by a team of loyal and motivated experts in their field, SFAM was so successful that it now manages over one million customers.

With solid experience in distribution networks, the Group has expanded the business nationwide as it continues to innovate in new sectors: optical insurance, loyalty products with Foriou and tech equipment recycling with Smartphone Recycle.

With a capital of €67 million, the SFAM Development Group is now forecasting a 2016 turnover of more than €135 million and more than €200 million in 2017. SFAM is also actively considering entry into the European market.

Oversight: Sadri Fegaier (Chief Executive Officer), Olivier Cotte (Business Manager), Régis Gouy (Financial Director).


1Source: SFAM

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