One firm, two fund strategies
We are delighted that during 2019 we closed a new lower mid-market fund (the European Development Fund, “EDF”), so we are now able to invest in companies valued between €25-300m. A dedicated team, led by Alex Brebbia and David MacKenzie has been formed. Our mid-market fund continues to target deals between €75-300m, and the new fund targets deals between €25-75m. In 2019 the EDF team made the first two investments from the fund – STAXS and Microgen. 2019 investments from the mid-market fund include CARE Fertility and BOA CoreDux.
We are looking forward to working closely with the management teams across these portfolio companies to execute their growth strategies over the coming months.
In June we announced the sale of Phase One, a leading technology business specialising in high-end digital imaging software and equipment.
We acquired a majority stake in Phase One in 2014, having identified strong growth in the use of high resolution, medium format imaging e.g. aerial imaging for 3D mapping and homeland security applications; and in the number of digital images being captured and shared globally.
Since then, we supported Phase One to undergo a significant transformation, from a hardware to software-centric business focus, which has helped drive a revenue CAGR of +38% in its Software Imaging Systems business unit between 2014 and 2018. Over the last 5 years, Phase One has also made two add-on acquisitions including its main supplier in Japan; and invested significantly in R&D, to drive continuous innovation in medium format imaging, most recently with the successful launch of the IQ4 and IXM systems for individual photographers and industrial end uses.
“Silverfleet’s strategic guidance and financial support over the past five years has been instrumental in enabling us to fulfil our potential by pushing the technology boundaries and innovating intelligently in response to our customers’ needs in both our SIS and ICS divisions.”
Henrik Håkonsson, Chief Executive of Phase One
“We could not be happier with the result achieved from the sale of Phase One. This exit represents another very successful investment for our firm in the Nordic region; where we continue to actively look for differentiated businesses with strong international growth potential, like Phase One”
Gareth Whiley, Managing Partner at Silverfleet Capital
Buy and build is a vital part of Silverfleet’s strategy and part of our DNA. We have been pursuing this form of investing for over 20 years and it continues to be a key part of how we create value and how we originate.
Add-on acquisitions have enabled the portfolio to capitalise on benefits such as the acquisition of new product lines, new customer relationships and/or cross-selling opportunities.
Since 2004, 15 out of 32 of our investments have made 80 add-on acquisitions across 46 different countries.
We continued to build on our strong track record of Buy & Build with six add-on acquisitions across the portfolio.
We were delighted to welcome 12 new hires across the team.
We expanded our lower mid-market investment team with Christopher Hintzen and Thomas Artmann joining the London office, and Ricardo Sommer joining the Munich office.
In the mid-market investment team, Loïc Meheust joined the Paris office, and Farhad Tatar and Kelsey Bayley joined the London office.
Jacqueline Randall joined as Investor Relations Executive, and Kate Allen as Head of Communications.
Dorina Demmler and Julia Squires joined as Executive Assistants. We also expanded our HR Team with Joshna Gami joining as HR Assistant, and the Finance Team with Petra Egan joining as Fund Administrator.
Silverfleet has a long track-record of investing in and driving technology in the portfolio. As a firm, we have built a great network of technology experts to help us originate and evaluate transactions and keep us abreast of the latest developments in the newest technologies.
This year we were delighted to launch our Technology Panel comprising of 5 technology sector experts. The purpose of the panel is to help promote and share technology knowledge at Silverfleet and enables us to maintain a close relationship with experts in the technology sector.
At Silverfleet we have always championed the promotion of ESG best practice. Responsible investment has become the norm for the private equity sector, and as a firm we have made a more conscious effort to raise the bar for ourselves when it comes to issues surrounding ESG. As part of this we have implemented a new, rigorous ESG process that stretches from due diligence through to ownership and, ultimately, exit.
We have renewed our commitment to promoting gender diversity by becoming a supporter of Level 20, a network dedicated to increasing the number of women in the private equity industry. We have also retained an external ESG specialist to review our entire portfolio and establish a benchmark and a metric for the ESG work.
The purpose and ultimate goal of our ESG work is that we not only adhere to all relevant regulations and compliance demands, but also that the work we do in our companies is inspirational and contributes positively to our employees and, therefore, to society at large.