Newly Founded Investment Company SEVEST Launches Leveraged Buyout Fund
- LBO Fund with a volume of 250 million euros planned
- SEVEST is an independent part of the Serafin Group
- Focus on companies with purchase prices up to 100 million euros in the "Industrial Technology" sector in the German-speaking region
Munich, November 7, 2022. SEVEST (www.sevest.de), a private investment company based in Munich, has commenced operational business activities. The company is an independent part of Serafin (www.serafin-gruppe.de), a diversified corporate group with a group turnover of over 1 billion euros.
The newly established SEVEST plans to launch a 250-million-euro fund intended for Leveraged Buyout transactions. The planned LBO Fund is aimed at market-leading companies and Hidden Champions in the Industrial Technology sector, focusing on Germany, Austria, and Switzerland (DACH region).
SEVEST will concentrate on transactions with purchase prices up to 100 million euros, or up to 150 million euros with co-investments from existing investors. Plans include majority or minority holdings with significant control rights, always adopting an active entrepreneurial approach for operational value enhancement and further development of the portfolio companies.
Founding partners of SEVEST are Serafin founder Philipp Haindl and Marco Pagacz, long-standing managing director of Serafin, as well as David Lisewski, who was previously active at Bregal Unternehmerkapital, among others.
SEVEST Benefits from Serafin Structures
Through the chosen structure as a Leveraged Buyout Fund, SEVEST can extend the successful Serafin model of investments to the mid-market: The fund structure allows for larger transactions through the participation of third-party investors and the use of acquisition financing.
SEVEST thereby has a significant competitive advantage as the company can deploy capital and operational resources that represent a unique feature at this scale for the German-speaking small-cap LBO market. Thus, SEVEST has access to an experienced Operational Value Creation Team, which usually only large funds or turnaround investors can afford. Additionally, the SEVEST team can utilize back-office structures of Serafin, such as Human Resources and Legal Counsel.
SEVEST Managing Director Marco Pagacz explains: “Our structure enables a very transparent investment approach. We deliberately chose a commercial orientation to actively support and further develop our portfolio companies. This meets the needs of the German Mittelstand.”
Philipp Haindl states: “We aim to play a significant role in the small-cap buyout market in the DACH region in the future. Our goal is sustainable value creation for the companies and investors. Although fundraising is challenging in the current environment, we feel well-prepared due to our track record and operational approach. To be active in the market as quickly as possible, we will pre-finance the first transactions even before the completion of fundraising.”
The start of fundraising is planned for the 1st quarter of 2023.
David Lisewski says: “The current market environment for transactions is different from previous years, with many challenges at various levels; however, this environment offers many value enhancement opportunities for our investors, especially with our operational approach. Many Mittelstand companies will benefit from our operational experience and support in a partnership. In turbulent times, our private equity approach can offer financial and operational stability.”
Investment Profile Transactions: Succession arrangements, Management Buyout, Carve-Out, Growth capital, Companies with operational improvement potential
Sectors: Industrial Technology, industry-related services, and SoftwareRegion: DACHRevenue: > 50 million eurosBusiness Model: Non-cyclical with stable financial figures/cash flowsPurchase Price: 50-100 million euros; up to 150 million euros with co-investments from existing investorsShares: Majority, or minorities with significant control rightsRole: Fund
Active entrepreneurial approach to value enhancementSEVEST Fund I GmbH & Co. KG. German Limited Partnership. Qualified as Alternative Investment Fund (AIF) and as a closed special AIF within the meaning of the Investment Code (KAGB); AIFM: SEVEST Management GmbH with BaFin registration
