The Interview

aig uity Partners AG

turmoil of the financial crisis. In fact, never were there any banking issues, which is quite astonishing for a buyout completed on the eve of the Lehman bankruptcy.

Capvis further developed Bartec with two add-on acquisitions which complemented the technical expertise and gave access to growing markets. The company was also reorganized into business units to be closer to the customer and the various product markets. Last but not least, we executed a thorough operational excellence program which helped a great deal in increasing margins and cash-flow in the downturn of 2009.

phase. Bartec had completed a terrific development, and the challenge was how the company might convince potential bidders that there was so much more potential remaining. Bartec had reached a new level of excellence under the guidance of Capvis but needed to demonstrate the future upside potential. We undertook a detailed bottom-up business plan exercise and prepared plenty of supporting documents and data to prove the concept. Once the official exit process started most of the work was already behind us.

The Capvis Funds Q acquired Bartec in summer 2008 and the company developed strongly during the ownership.

In early 2012 the Capvis Funds decided that the agenda set at entry had been completed successfully so the search for a new owner was started in the knowledge that there was always strong interest particularly from trade buyers. Capvis mandated investment banks and approached the market in the spring. At the conclusion Charterhouse succeeded in winning the auction process. We are pleased to say that it was with minimal disruption to the company.

Q

Were there any challenges that needed to be overcome?

Yes, but it was mostly in the sale preparation

2011 saw global economic turmoil; do you think this has impacted on

your 2012 strategy?

Yes, it has. We have to get used to shorter business cycles with more downs than ups. The presumably ‘golden age’ of 2003—2007 is unlikely to ever return. We are now in the new norm and we all need to get used to it. Any rebound in 2010 turned out to be somewhat short lived. After 2009, we put special focus on business aspects such as crisis resistance, substance, lower break-even points and ability to rapidly adjust cost thresholds, etc. Capvis has always maintained conservative levels of leverage and preserved good relationships with the banking community throughout. The key challenge in 2012 was to additionally consider characteristics which were somehow overlooked in the last decade. In that sense our attitude to 2012 was not too different from 2009. Despite the caution, the Capvis Funds have bought two great companies so far this year. Capvis acquired hessnatur, the leading retailer of ecological apparel in Germany and Ondal, a leading med-tech component supplier. Both are market leaders and companies with great potential. Capvis is in the business of investing money and generating superior returns for the investors whatever the economic outlook.

Daniel Flaig is in Private Equity since 1995 when he joined Capvis’ predecessor company SBC Equity Partners Ltd. Previously he was a business consultant with Arthur Andersen in Zurich. In 2002 he became responsible for activities of Capvis Equity Partners AG in Germany.

Daniel Flaig currently served on the boards of ACP, Benninger, Kaffee Partner, Pacific Consult, Wittur, WMF and Hessnatur.

Daniel Flaig (born 1968) is a partner at Capvis Equity Partners in Zurich. Mr. Flaig received a master of Science from Stanford University and previously a master’s degree in Business Administration from University of St. Gallen. He also studied at the Ecole Supérieure de Commerce, Lyon, and the University of British Columbia, Vancouver.

Contact: Daniel Flaig Tel: 0041 43 300 5814 Email: daniel.flaig@capvis.com

Capvis Equity Partners AG, Talacker 42, CH-8022 Zürich Tel. +41 43 300 58 58 Fax +41 43 300 58 59