The Interview
Daniel Fla Partner at Capvis Equ
Q
Can you give an overview of Capvis and its organizational structure?
Capvis is the largest private equity and buyout team in Switzerland. The team in Zurich, with fifteen dedicated professionals, exclusively advises the Capvis Funds being managed in Jersey.
The origins of Capvis itself date back to the early 1990s. Until 1998, Capvis Zurich was part of the Swiss Bank Corporation, initially ‘the Equity Banking Team’ and in 1995 renamed as SBC Equity Partners AG. Between 1995 and 1998 we completed the buyouts of Saia-Burges, sia Abrasives, Komax and Disetronic; all landmark deals in Switzerland. After the merger of the Swiss Bank Corporation with UBS, the team became a semi-independent buyout group within UBS working under the name of Capvis which represents ‘Capital with Vision’. Up until 1999, the team used the balance sheet of the SBC, after the merger, and under the name of Capvis, the first fund was launched with 60% third party money and 40% coming from UBS. Capvis I was a Swiss Franc fund (CHF 310m). At the end of 2002, Capvis became fully independent of UBS. In 2003, Capvis II LP was raised with a total commitment of EUR 340m. This fund was launched in Euros as the core investment region is German speaking Europe where the Euro is the predominant currency. In April 2008 Capvis announced the successful closing of the current fund, Capvis III, which has total commitments of EUR 600m. Today, there are six portfolio companies within Capvis III.
As a predominantly Swiss team our significant local expertise and networks are brought to bear in our native market. Although the German economy is approximately six times larger than the Swiss economy around half of the current portfolio is made up of Swiss companies. German speaking Europe is the strongest region in Europe and a great place to invest in. In addition
we have significant emerging markets exposure as many of the portfolio companies are highly international and large exporters into these markets.
The Capvis partners have now been working together for over 10 years. Our main office remains in Zurich although last year we opened our office in Frankfurt to be even closer to the German market, our second home market. The Frankfurt office is used for sourcing and market intelligence. We are still one team faithful to our Swiss roots.
Q
What are the main areas of Capvis’ expertise?
Besides the Frankfurt office we also have a China office in Shanghai. This is mainly used for the benefit of the portfolio companies and also in our due diligence of potential acquisitions. We realized that most portfolio companies have strong Chinese connections, be it suppliers, customers or competitors. For a better evaluation we use our locally based team of four dedicated and experienced professionals. Capvis Shanghai opened in 2005 and has been active in advising on Asian strategies across the portfolio.
Another expertise is our regional focus. The Capvis investment strategy is to take majority positions in mid-sized leading companies with a strong link to German speaking Europe. We especially like the so-called hidden champions, i.e. companies that are global niche market leaders or regional champions. We believe in the strengths of market leadership and the competitive advantage that comes with such positions. The Capvis portfolio, which is exclusively comprised of market leaders, generally managed the crisis very well. We have a particular expertise in industries that are ‘right on our door step’ and where Capvis has investment experience,
i.e. machinery equipment, med-tech, consumer goods, and also
service businesses. Nevertheless, we are keen to consider most sectors with the exception of certain industries such as real estate, gaming and bio-tech.
We also believe it is fundamentally important to understand the people and the local context as well as the industry. Understanding the needs of the people involved is often the key to winning a deal. Capvis’ particular transaction expertise is succession solutions for family owned businesses or complex corporate spin-offs. All business is local which is why we focus on Switzerland, Germany and Austria. The Swiss heritage is well regarded, especially with potential vendors and management teams. The Capvis team has been in business for almost 25 years, having strong local roots and local connections.
transaction? Q
Bartec is a true hidden champion, i.e. world market leader in niche segments, but unknown to most people. Bartec is a market leading provider of explosion protection and safety technology for hazardous environments. The business model enjoys high barriers to entry due to onerous certification requirements. Bartec is an award winning innovative company active in four strategic business segments: explosion protection, measurement and analyzer systems, electric trace heating, and mining. It is based in South-West Germany with worldwide manufacturing and distribution facilities. Bartec has 1,500 employees and generates approximately EUR 300m revenue with a high double digit EBITDA margin. Bartec has a high strategic value.
The Capvis Funds acquired Bartec in summer 2008 and the company developed strongly during the ownership. The management did an excellent job in guiding the company through the
You recently sold Bartec to Charterhouse. Can you discuss the
30
www.finance-monthly.com
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92 |
Page 93 |
Page 94 |
Page 95 |
Page 96 |
Page 97 |
Page 98 |
Page 99 |
Page 100 |
Page 101 |
Page 102 |
Page 103 |
Page 104 |
Page 105 |
Page 106 |
Page 107 |
Page 108 |
Page 109 |
Page 110 |
Page 111 |
Page 112