Pentahold invests both in majority- and substantial minority stakes for the medium and long term. The investment horizon can, but does not have, to be decided upfront. In light of the strategic evolution and the performance of the company, Pentahold has the flexibility to alter the investment horizon. Pentahold has a broad experience in co-investing with other financial investors or in “equal party”-structures (50/50).
Pentahold can participate from 2,5 up to 20 million EUR per investment. All financing instruments such as share capital, mezzanine financing and loans are available. Although Pentahold only provides mezzanine financing and/or loans in combination with an investment in the share capital of the company. As a result, Pentahold targets transactions involving companies with an EBITDA between 1 and 20 million EUR. For larger investments Pentahold has a network of financial co-investors with similar investment criteria.
Management plays a crucial part of the investment case for Pentahold. In the negotiation phase we try to create enough time for both parties to get to know one another. A good fit with the corporate culture is essential for the intense collaboration process afterwards. Pentahold never steps in to take over the day to day management, but will take important decisions and fundamental strategic choices to execute the pre-defined business plan together with the management team. The management team is encouraged to participate in their company through direct investment or through an option plan that will be created so that they can participate in the realized added value.
Pentahold has no specific industry focus, but companies with a product or services that are still under development, or where the client base and/or market potential are not yet apparent (more Venture Capital), are less in our investment scope. Corporations that have an ambitious growth plan and/or potential to internationally expand have the best fit with Pentahold’s investment focus and track record. The strategic growth plan based on a shared vision, constructed around the execution of a buy and build strategy or organic growth are the foundation for a clear framework for the collaboration between Pentahold and the management.
The situations where the experience of the Pentahold team can be of added value are diverse and often complex:
- Succession of the family company
- Management buy-out
- Management buy-in
- Owner buy-out
- Spin-off non-core activity of a larger group
- Growth financing