WORKING WITH US
Pechel Industries Partenaires takes majority or minority stakes in unlisted SMEs, with the objective of accelerating their growth as part of a long-term value creation strategy, focusing on their sustainable performance.
The companies in which we invest have the following characteristics:
– Turnover > 8 M€ – Ebitda > 1.5 M€
– Strong positioning on their market
– Strong fundamentals and historical profitability
– Well identified and action-oriented growth potential over our investment cycle (5-7 years)
We devote the necessary time and resources to understand companies challenges and their potential to establish with the management a realistic and ambitious value creation program. Beyond the activity sector, we invest above all in companies led by talented and ambitious management teams.
We prefer Capital Development and “Management Buy Out” situations, which consist in relying on the existing management team, but we also invest in companies whose management succession has yet to be organized (“Management Buy In”). We generally invest tickets between €3 and €10m per operation, with the possibility to add up to the capital of co-investors, especially with the contribution of our LPs.
WORKING WITH US
Our added value
Through our numerous investment operations, we have built a methodology, a core experience and a broad network of skills that we make available to our portfolio companies. Our contribution is part of an open and permanent dialogue with management teams, whose management autonomy we respect and whose entrepreneurial spirit we support. We share their determination to grow their businesses and want to be a helpful partner.
Our support is mainly focused on the following issues:
– Establishing efficient governance to improve decision making
– Strategic roadmap clarification by defining priority areas for growth
– Structuring and reinforcement of the companies (key recruitments, team training)
– Acceleration of organic growth through investments in sales and marketing resources
– Innovation stimulation to make the difference with respect to competitors
– Implementing a path of operational, environmental and social (ESG) excellence to significantly and sustainably improve the company’s efficiency and profitability
– External growth operations
– Improvement of activity management tools
– Strengthening and optimizing financing
In order to help the companies in their transformation scheme, we provide them with a team and an “In-house” methodology of sustainable performance that is responsible for assisting entrepreneurs in implementing their defined plans and co-built them together.
In addition to our own skills, we provide our participants with a vast network of experts, familiar with the environment of small and medium-sized companies and capable of intervening on a wide range of issues: sales acceleration, digitalization, improvement of industrial processes, optimization of working capital, coaching of management committees, etc.
This expertise and know-how saves precious time in implementing business plans or making the necessary adaptations in the face of unforeseen events.
WORKING WITH US
Partnering with managers
Combining the managers vision with our experience as a professional investor, sharing a common view of the company’s project and the same determination to make sense to this ambition, creating a frank and trustful relationship: this is the base on which we build our partnership with management teams.
Each of our investments is based on a perfect alignment of interests between the Management and Pechel Industries Partenaires: our investments managers are systematically shareholders alongside us as we implement incentive profit-sharing mechanisms that reinforce this alignment of interests.
From the outset, roles and responsibilities of each party are clearly defined in a shareholders’ agreement, which sets out unambiguously governance rules, in line with best standards. Strategic and financial decisions are made by the supervisory board, in which Pechel Industries Partenaires plays an active and constructive role by contributing the experience it has accumulated through its numerous investments.
This organization provides the necessary hindsight to make strategic decisions and to deal with imponderable events. It also marks Pechel’s desire to respect operational management autonomy of managers who preserve the presidency of their company. Together with the management, we determine the main priorities through a detailed action plan, of which foundations are laid even before our entry into the capital.
This action plan summarizes the value creation program that will be implemented with the support of Pechel Industries Partenaires, in order to optimize the exit conditions at the end of our investment cycle (generally between 5 and 7 years).
It is built on tangible assumptions and an implementation schedule. It relies on the company’s fundamental qualities and the management team, to improve and to accelerate the companies development thanks to the identified value creation levers.