Lower mid-market LBOs include buy-outs and growth operations of European SMEs. It is a deep and resilient market with strong potential for value creation.
THE EUROPEAN LOWER-MID MARKET LBO
A strong potential for value creation
The lower mid-market offers a large number of potential targets given the very large number of medium-sized companies in Europe, the forthcoming retirement of many founders and the need for capital from successful companies wishing to accelerate their growth. It is the ultimate market sector for build-up strategies which allow for rapid transformations when they are well led
A privileged place for value creation
It is in a medium-sized company that a talented management team with professional shareholders has the best chance of creating value in a limited time frame
A resilient market
The lower mid-market has demonstrated its resilience during times of crisis and is less dependent than the mid-and large-cap markets on bank debt and financial engineering to create value
BLUESTER CAPITAL : A FEW DATES
A strong track record of investments
built over the last 13 years through 3 different funds
Parvilla I : 37M€, funds liquidation period
Parvilla II : 31M€
Parvilla III : 48M€
Launch of Bluester Fund IV
OUR TARGETED STRATEGY
Bluester Capital offers an original
investment strategy, entirely focused
On lower mid-market LBOs:
- Size of target companies: enterprise value between €15 and €200 million with a core target of between €20 and €100 million, corresponding to equity investments of €10 to €40 million.
- Size of the corresponding funds: from €100 to €500 million
On Western Europe:
and especially on exporting European countries (Scandinavia, Belgium, Germany, German Switzerland, U.K. and France), which offer an excellent mix of:
- investment opportunities
- favorable business environments
- managerial resources
OUR ADDED VALUE
- Access to the European LBO lower mid-market
- A professional approach based on a long experience in direct investment
- An attractive risk/return profile
For private investors and many institutional investors, it is complex, if not impossible, to invest alone in small or medium-sized companies abroad. Given the number of funds and the significant differences in performance between them, it is difficult to identify and select the best performing funds outside France. As a result, access to the European lower mid-market is in practice only possible via an intermediary investment structure managed by professionals:
- to solve the problem of access to targeted funds that are often small and not very visible
- to implement a fund structure and the professional expertise required for selection
- to have access to a dealflow of direct investments.deriving from these contacts.
Since 2007, Bluester Capital has sought to systematically identify and analyze all investment opportunities in lower mid-market funds, particularly in Northern Europe, thus creating an unrivalled network of teams operating in this segment.
Through Bluester Capital, our investors also have access to a geographically diversified portfolio of direct investments in SMEs.
There are hundreds of funds positioned on the European lower mid-market. Over the last thirteen years, the Bluester Capital team has developed an in-depth knowledge of this universe. It meets regularly with the various management teams and thus constantly updates its analyses of the funds that fit with its investment strategy. It is also constantly monitoring the emergence of new players (“first time funds”), particularly those coming from well-established funds in the market, which can be high-performing funds given the combination of experience and strong motivation of their managers.
The smallest funds often depend on a few key partners within an investment team. Having a long experience in direct investment allows for a better appreciation of the profile of the key partners as well as their working methods, the functioning of the team and its risk culture.
In addition, the Bluester Capital team is able to quickly and professionally analyze any investment proposal made: analyzing the investment memos and the due diligences ; reviewing the models and sometimes even involving its own network.
Bluester Capital offers a set of characteristics rarely found in a single fund:
- a focus on the LBO lower mid-market, which is the segment offering the highest recurring profitability,
- a mix of primary and secondary investments in funds, and direct investments alongside the funds,
- a broad geographical diversification: France, United Kingdom, Norway, Denmark, Sweden, Finland, Belgium, Holland, Germany and German-speaking Switzerland and more pragmatically Spain, Portugal and Italy,
- a management team with effective experience in direct investment, which represents an advantage both in analysing funds and in making co-investments and supporting them.
At the time of raising its 4th generation fund, Parvilla has entered a strategic partnership with Capital Croissance, a well-established player in the French LBO market and changed its name : we now are Bluester Capital.
Parvilla’s strategy remains unchanged and will continue to focus on fund of funds (primary and secondary) and co-investments in the European lower mid-market (funds of €100 to €500 million who aim at investing in €15-200M companies), mainly for private investors, families and family offices.