Lower mid-market LBOs include buy-outs and growth operations of European SMEs. It is a deep, resilient market with strong potential for value creation.
THE LBO LOWER-MID MARKET
High potential for value creation
01. Investments in funds
Bluester Capital invests in funds which are in the process of raising capital and allows its investors to :
- benefit from a wide diversification: investing in around 10 funds gives access to around one hundred underlying investments;
- benefit from a high level of professional expertise to analyze and monitor the best funds in a constantly evolving universe of several hundred funds in Europe.
Selectively, Bluester Capital will increase the fund’s performance and liquidity by buying on the secondary market single positions that fit with its investment strategy and are widely invested.
These transactions have, by nature, a shorter average duration than a primary investment and therefore improve the fund of funds’ liquidity timeframe.
02. Direct investments
Bluester Capital invests directly in LBO transactions alongside funds well-known by the team.
The funds in which Bluester Capital has invested or on which it has carried out due diligence sometimes have transaction opportunities that exceed their financial capacity. Besides, some teams systematically seek co-investors by setting up “deal by deal” operations. Other professionals, from reputable funds, may need investors for one or more of their acquisitions before considering raising their own funds.
Given the direct investment experience (in LBOs and development capital) of its partners, Bluester Capital is a natural co-investor, reactive in its analysis and who contributes to the development of portfolio companies.
- Investments in funds
- Direct investments