For its second edition, CF News’ 2015 Development Capital Funds ranking awards the 10th place to Edmond de Rothschild Investment Partners out of 29 players in total. The ranking celebrated a dynamic market: the combined amount of investments completed by all 29 companies increased by 7.94% in 2015, totaling 1.144bn euros with 389 companies invested in.
Development Capital Reports a Dynamic Deal Flow in 2015
Following a recovery in activity in 2014, the deal flow held firm in 2015 with increasing demand for capital restructuring, shareholders restructuring and growth financing operations.
These various operations are popular, as explained by Alexandre Foulon and David Robin, Managing Partners of Edmond de Rothschild Investment Partners Small Cap fund, to CF News Magazine:
“Growth OBOs combining cash in and cash out are more and more common. Company leaders often link together the financing of a development project and the reorganization of the shareholding”.
External Growth and Quality Management
Against the backdrop of stagnating economic times, the teams at Edmond de Rothschild Investment Partners are attentively focused on opportunities in the form of external growth operations.
Hence, Edmond de Rothschild Investment Partners’ Small Cap team completed 10 build-ups in 2015.
“The sluggish economic growth leads us to look for very dynamic operations, which require structuring and value creating actions”, David Robin explains.
Edmond de Rothschild Investment Partners also relies on management to better support these operations and the changes experienced by the companies. Thus, the team supported the on-boarding of eleven executives within its participations.
Convinced that management quality is essential, Alexandre Foulon explains that:
“It is important to ensure straight away that the company leader is able not only to bring its company into a whole new dimension, but also to surround him/herself with reliable employees, because ambitious projects often require new expertise”.
Edmond de Rothschild Investment Partners invested in 7 companies in 2015.
The CFNEWS ranking takes into consideration operations concerning French companies posting a positive operating result, and whose capital is held by minority shareholders. Eligible operations include equity and quasi-equity investments (excluding those made entirely through senior bonds with attached equity warrants), reclassifications of securities, capital increases and leveraged acquisitions (LBO, MBO, OBO, etc.) as well as build-ups, provided that the acquiring company is not a majority shareholder.