Specialised teams

Private Equity

Luxempart, which remains true to its DNA as an investor in small and medium-sized companies, branched out into private equity at a very early stage. Luxempart has chosen to sponsor and support strong local teams that are well established within their respective economic and corporate fabrics in order to increase its international exposure and strengthen its network.

PIPE (Private Investment in Public Equity)

Luxempart has a team of specialists who select investment targets in Europe based on the attractiveness of the business model, the growth prospects and the potential for optimisation as well as the valuation upside of the relevant companies. The participations taken, while being minority stakes, are significant in order to allow for influencing investee companies at the level of their decision-making bodies.

Indufin is a team that specialises in purchasing investments with a mid-term investment horizon primarily in Belgium.

www.indufin.be

Percentage of Luxempart’s portfolio

Indufin accounted for €28 million of Luxempart’s net assets at 31.12.2017.

Luxempart S.A. has a 50% interest in Indufin, and the remaining 50% is held by Eik N.V., a Belgian family-owned company.

Registered office :
Leudelange, Luxembourg (ICP SICAR)
Haasrode, Belgique (INDUFIN S.A.)
Area of activity :
Société d’investissement en capital risque

Decisions are taken unanimously by the Board of Directors.

Investment strategy

Indufin is a team of private equity professionals that has the following characteristic features :

• an active partner that supports the management team and the existing shareholders, based on a “hands-with” or “hands-on” approach
• an active partner that supports an existing or new management team as part of leveraged or unleveraged buy-out transactions
• an active partner who takes part in the value-creation process by financing internal and external growth projects
• a partner that raises investment amounts ranging between €5 million and €20 million
• no sector bias
• investing in profitable and fast-growing companies
• access to funds of €100 million, in order to implement its strategy

2017 performance

The companies in Indufin’s portfolio saw a positive trend in the commercial positioning in 2017 on an overall basis, although some companies were negatively affected by their positioning in more exposed sectors such as retailing. Indufin invested in AXI, an IT company that operates in Belgium and the Netherlands, in early 2017. The Indufin team also disposed of Preflexibel during the summer of 2017, and therefore enabled its shareholders to achieve a double-digit internal rate of return.

2018 outlook

Indufin is still assessing several deals while ensuring that its investment portfolio is properly managed and valued.

Statement by the person responsible for the investments

Luxempart has built a close relationship based on mutual trust with the Indufin team since 2001, which has enabled it to generate an excellent performance to date. The members of the team implement a tried and tested investment strategy in the medium-sized company sector in Belgium, which should enable strong development, in terms of both the companies in the portfolio and of future investment opportunities.

Indufin Capital Partners’ portfolio at 31.12.2017

AXI (51,6 %)
AXI is an IT company that operates in Belgium and the Netherlands, and has around 230 employees. The company develops software, and provides infrastructure that includes Cloud services, and the implementation and management of IT environments on the basis of SLAs (Service Level Agreements).

Bartech (69,7 %)
Bartech is the global leader in the automatic minibar market.

Baobab (62,4 %)
The Belgian company manufactures and distributes decorative scented candles, scent diffusers, and high-end room fragrances.

Kyotec Group (32,0 %)
Kyotec Group designs, assembles, and installs wall claddings for large residential or office property projects

NMC (14,9 %)
NMC is a company that specialises in the manufacturing of synthetic foams for industrial uses (protection and insulation purposes) and private uses (decorative mouldings).

Veritas (71,1 %)
Veritas is a Belgian store chain specialising in creative ideas for footwear, underwear, customised accessories, clothing, and sewing, embroidery, knitting, and crochet items.

Ekkio Capital est une équipe spécialisée dans la prise de participations principalement majoritaires en France. Ekkio Capital gère quatre fonds professionnels de capital investissement.

www.ekkio.fr

Investment strategy

Ekkio Capital has established itself as a specialised investor in growth SMCs, and has the following characteristic features :
• an investor in French companies for the past 15 years
• an investor that has developed strong sector-based expertise in Tourism & Leisure, Healthcare, and TIC (Test, Inspection & Certification)
• an active partner that is close to entrepreneurs and to the reality that they face on the ground;
• an experienced investor that has established itself by via its contacts with the 1,500 companies that it has met in 15 years
• a partner that provides support for change at SMCs via (i) providing active support to entrepreneurs with their projects, e.g. internationalisation, industrial investments, and external growth, and (ii) a network of company directors who provide their experience
• a partner that raises investment amounts ranging between €5 million and €15 million (and larger amounts via syndication)

Percentage of Luxempart’s portfolio

The value of the funds invested by Luxempart and managed by Ekkio Capital at 31.12.2017 was roughly €53 million.

The shareholders in the various funds managed by Ekkio Capital are primarily French and foreign financial institutions. Luxempart invests in Ekkio Capital’s various funds as a sponsor.

Registered office : Paris, France
Area of activity : Société d’investissement en capital risque

Decisions are taken by the Ekkio Capital management team on an independent basis.

2017 performance

The Ekkio Capital team disposed of two companies held by the Ekkio Capital II Fund (Groupe 3S and Amatsi) in 2017, thereby enabling its shareholders to generate an internal rate of return and capital gains in excess of market standards. The Ekkio Capital III Fund was also very active in 2017, and made three new investments and six complementary investments amounting to a total investment of €30 million. Furthermore, Ekkio Capital IV (which has recently been set up) purchased a majority interest in FX Solutions, a company involved in the design, manufacturing, and distribution of shoulder prostheses at the very end of the year.

2018 outlook

Ekkio Capital recently closed the first round of its Ekkio Capital IV Fund, after calling 100% of the previous fund. The management team is planning to invest in several companies during 2018. Luxempart has committed to contributing 25% of the fourth fund managed by the team. Ekkio Capital is already reviewing several investment deals, which are expected to become firm in 2018.

Statement by the person responsible for the investments

Ekkio Capital has a unique profile in the private equity business in France. Searching for companies that conduct high-growth activities in profitable sectors, and implementing innovative investment proposals that create value within these companies are the genuine trademark of Ekkio Capital’s teams. The recent successful raising of a fourth fund confirms the attractiveness of Ekkio Capital’s positioning for its investors.

The Ekkio Capital II Professional Private Equity Fund’s portfolio at 31.12.2017

L’inventoriste (45,0 %)
The company L’inventoriste offers services aimed at outsourcing physical stock inventories for retail chains. The group is the French market leader, and is currently expanding in Europe, in order to support its customers. The inventory management company currently operates in France, Spain, Italy, and the Benelux Region, and is expanding in Germany and the Netherlands.

Elithis (34,0 %)
The Elithis Group is an engineering and consultancy firm that recommends and designs technical utilities systems primarily for new buildings (climate control and electrical engineering). Its business activities are in keeping with efforts to improve buildings’ energy-efficiency.

The Ekkio Capital III Professional Private Equity Fund’s portfolio at 31.12.2017

Campings.com (40,0 %)
Campings.com is involved in the online distribution and marketing of open-air holiday rentals.

Form Développement (65,0 %)
Form Développement operates rehabilitation centres. The company aims to develop around 20 centres.

CGH (67,0 %)
CGH manages 29 luxury apartment residences in the French Alps. These residences offer upmarket stays to tourists thanks to the quality of (i) their infrastructure and the surface area of their apartments, (ii) their services, and (iii) their facilities (swimming pool, spa, hammam, and sauna).

Audevard (81,0 %)
Audevard is a pharmaceutical laboratory that is exclusively dedicated to equine health. The company develops and markets dietary solutions, drugs, and healthcare products for horses. It is the market leader in France, and has a presence in Germany, the United Kingdom, and the Benelux Region.

Sterience (86,0 %)
Sterience provides sterilisation services for reusable medical systems. It manages eight sterilisation centres in France.

ParisCityVision (89,0 %)
Paris CityVision offers tours in Paris and in France: (i) guided bus and minibus tours in and around Paris, as well as (ii) boat trips on the River Seine with or without an on-board meal.

Thoiry (53,0 %)
Thoiry manages four zoos: two of the main animal parks in France (Thoiry near Paris and Safari de Peaugres near Lyon), as well as a smaller park in France (Le Colombier near Rodez).
It has recently taken over the management of a zoo in Portugal (Santo Inácio near Porto).

Acceres (78,0 %)
Acceres is a specialised consulting company in the agri-chemical sector. The company offers its customers (primarily agri-chemical groups) consultancy services, and services aimed at registering the products they bring to market, including for bio-pesticides and biocides.

Heitz System (nc)
Heitz is a company that develops software for managing subscriptions, access controls, and other APIs for gyms and swimming pools.

The Ekkio Capital IV Professional Private Equity Fund’s portfolio at 31.12.2017

FX Solutions (nc)
FX Solutions is a French company involved in the design, manufacturing, and distribution of shoulder prostheses.

Following a successful collaboration on DS Care and Mirato, Luxempart entered into a formal partnership with Bravo Invest, which is based in Milan, Italy, by founding a joint investment company called Bravo Capital. Bravo Invest assists Luxempart with the day-to-day management of its investments in Italy. Bravo Capital aims to be actively involved in development capital and buy-out transactions, primarily in Northern Italy.

www.bravoinvest.it

Investment strategy

Luxempart has formed a strong partnership with Bravo Invest, which is characterised by investments in Northern Italy with the following characteristic features, where Luxempart is concerned :

• majority and minority investments
• investments that benefit from Luxempart and Bravo Invest’s European network
• investments in SMCs with an international focus
• investments in fast-growing SMCs
• investment amounts ranging between €5 million and €15 million (and larger amounts via syndication)

Percentage of Luxempart’s portfolio

Bravo Capital’s value at 31.12.2017 was  €27 million.

Luxempart is currently the only investor in Bravo Capital.

Registered office : Leudelange, Luxembourg (Bravo Capital)
Milan, Italie (Bravo Invest)
Target country : Italy
Area of activity : Société d’investissement en capital risque

2017 performance

Bravo invested in Best Union in the first half of 2017, and has reviewed several investment opportunities.

2018 outlook

Bravo signed an agreement to purchase a significant minority interest in a company involved in the distribution of spare parts intended for professionals in the heating sector in early 2018.

Statement by the person responsible for the investments

Northern Italy is experiencing a remarkable development in its entrepreneurial and SMC fabric, the characteristic features of which are close to those of the German Mittelstand. The Bravo Team stands out due to its in-depth knowledge of this market, and its ability to generate a substantial opportunity flow. The investments made to date are very promising.

Portfolio at 31.12.2017

Best Union (15,0 %)
Best Union is involved in the design, production, marketing and management of integrated electronic ticketing and access control systems, as well as in the management and organisation of reception and security services for events.

Eurochiller (85,0 %)
Eurochiller is an Italian company that specialises in the design, production, and distribution of water or air-cooled refrigeration systems, as well as of temperature control devices.

MetalWorks (60,0 %)
MetalWorks designs, produces, and distributes upmarket haberdashery items and accessories for the major European luxury goods houses, and other brands involved in the upmarket ready-to-wear sector.

Joint investments

Luxempart makes minority investments and joint investments, primarily in the Grand Duchy of Luxembourg, Northern Italy, France, and Germany, the countries where Luxempart has extended its network. These equity investments are made alongside the teams that it sponsors, and alongside other institutional financial investors or private equity funds.

Accordingly, Luxempart has demonstrated its determination to gain more exposure to private equity alongside its long-term investments. This exposure enables Luxempart :

• to strengthen its existing partnerships;
• to form new trust-based relationships with
new partners;
• to enhance and capitalise on its European network;
• to invest more capital in fast-growing
European SMCs;
• to gain access to larger companies in Europe;
• to increase its investment opportunities, while thoroughly selecting its partners and the companies to which it commits;
• to enhance its sector expertise and that of its partners on a reciprocal basis.

This joint investment portfolio covers five different countries, and includes 13 companies in total.

Portfolio at 31.12.2017

IHS Holding Ltd (nc)
IHS operates telecoms towers for mobile telephony traffic in Africa, and is the leader on the African market.

INSEEC (nc)
The INSEEC Group is one of the leading French higher education groups. The Group has establishments in Paris, Bordeaux, Lyon, and Chambéry, as well as in London, Monaco, Geneva, Shanghai, and San Francisco, and brings together an Advanced Management School, an International University, BA and MA management programmes, ongoing training, higher communications, design and digital technology institutes, and an institute that prepares students for higher education exams (Atout Sup).

Marlink (nc)
Marlink provides satellite communication distribution services in the sea and land industrial sector.

Vivalto Home (12,0 %)
Vivalto Home operates retirement homes in Belgium. It has facilities in Wallonia, Flanders, and Brussels.

Mirato (15,8 %)
Mirato is an Italian company that is involved in the manufacturing and distribution of body care products with well-established brands in Italy.

FX Solutions (nc)
FX Solution is a French company involved in the design, manufacturing, and distribution of shoulder prostheses.

Groupe Quip (51,0 %)
Quip is a German group in the Aachen Region that consists of two segments, i.e. Quip AG and Talbot. The first segment provides temporary work and outsourcing services primarily in North-Rhine-Westphalia and in Southern Germany. The second segment, Talbot Services, is a company that specialises in the maintenance of railway vehicles and in the production of electric cars in Aachen.

Groupe Stoll (32,8 %)
Stoll is a German company that manufactures front-end loaders for agricultural machines.

EduPRO (60,0 %)
eduPRO, which is based in Vienna, is a market leader in the training sector, and offers training programmes for teenagers and adults. The company operates in Austria and in Northern Germany.

Deutsche Fachpflege Gruppe (15,4 %)
Deutsche Fachpflege is a German company involved in the provision of intensive care services outside hospitals.

Groupe RIMED (nc)
RIMED is the largest private medical radiology company in Switzerland, and operates seven radiology centres. RIMED also cooperates with various hospitals and private clinics in addition to its various centres.

Groupe arwe (45,0 %)
arwe designs transport solutions and provides service management and logistics chain management services to car manufacturers, vehicle rental companies and large European airports.

Groupe Rattay (39,9 %)
Rattay is a European manufacturer of tube compensators and flexible metal tubes that has operations in Germany, Austria, Denmark, the Czech Republic, Hungary, France and the United Kingdom.