What differentiates Odewald & Compagnie from Anglo-Saxon private equity investors?
We differentiate ourselves through our clear focus on high-growth SMEs in the German-speaking region, and on sectors where our partners contribute their operational experience. Odewald & Compagnie enjoys outstanding networking in the German-speaking SME sector. Our partners have gained management experience in senior positions, and contribute their individual networks. A further difference consists in our many years of experience as providers of private equity to companies in the German-speaking region, which we have acquired over almost one and a half decades, and where we have invested more than EUR 1 billion of equity in SMEs.
What is the investment strategy of the Odewald & Compagnie Fonds III fund that is currently realising investments?
Our Odewald & Compagnie III fund, which is currently in the investment phase, invests between EUR 30 million and EUR 50 million of equity per transaction in majority interests (as well as controlled minorities in exceptional cases) in profitable high-growth SMEs in the German-speaking region. Preferred sectors include specialist mechanical engineering, business services, IT, energy, medical technology and healthcare. Odewald & Compagnie III aims to become significantly involved in operational management. We attach importance to the moderate deployment of debt funding in our investments.
How do Odewald & Compagnie and Odewald KMU differ from each other?
Both of the Odewald & Compagnie III and Odewald KMU funds, concentrate in geographic terms on the German-speaking region, have a similar industrial focus, and place a strong emphasis on the moderate deployment of debt funding in their investments. The main differences between the funds, however, relate to the funds’ size, particularly the level of equity investment, and consequently also the size of potential companies in which they invest. While Odewald KMU invests between EUR 5 million and EUR 20 million of equity per transaction in established SMEs which have grown successfully to a level of sales of between EUR 20 million and EUR 100 million, Odewald & Compagnie III invests in each case between EUR 30 million and EUR 50 million of equity in profitable SMEs which enjoy strong potential, and which generate sales of up to EUR 400 million.
What do typical investment situations look like?
Odewald & Compagnie typically acquires a majority interest in the target company’s equity. The transaction is financed with moderate deployment of debt funding, and envisages long-term partnership with the respective company. Odewald & Compagnie generally takes the minority by two seats on the supervisory or advisory board. The chairman of this board is usually an independent personality, ideally with extensive and operational sector experience.
What course does the investment process typically take?
- Initial investment query at or by Odewald & Compagnie
- Corporate and market analysis (pre-review of the investment)
- Letter of intent and confidentiality agreement between the company and Odewald & Compagnie
- Access to company data for Odewald & Compagnie, followed by due diligence
- Development of a long-term and sustainable corporate plan
- Negotiation and signing of an investment agreement
- Continuous and intensive strategic support by Odewald & Compagnie during the entire duration of the investment