Leveraged Buy-Out

Development Capital

Market characteristics and position of the target companies

• Significant and stable cash flow
• Mature sectors and/or opportunities for better profit margins via improvement of operating efficiency

• Growth / development (investment in higer production capacity to accelerate growth)
• Financial restructuring (in presence of positive EBITDA)
• Opportunity for sector consolidation via acquisitions / mergers

Typical operation al characteristics

• Majority stakes, including co-investment with other closed-end funds
• Minority stakes only when having distinctive expertise in the sector or in a specific operation

• Significant stakes
• Main financial partner 
• The majority shareholder is tipically the Owner/CEO

Typical investment period

• 3/4 years

• 4/5 years

Reasons of operation for the seller

• Generational transfer
• Family or Management buy-out
• Exit from previous LBO

• Need to reinforce the capital structure
• Acquisition opportunities