We invest in diverse companies with an established and proven business model where we can add value by supporting management teams to achieve their long-term objectives and strategy.
Our investment framework is based on the following elements :
€ 50 m to € 300 m equity investments (with upsides up to € 500 m)
We invest between € 50 m and € 300 m per transaction in companies with an established and proven business model, via equity or quasi-equity instruments. Investments up to € 500 m are possible through co-investments by Cobepa's shareholders.
Majority or strong minority stake
We aim to be in a position which enables us to be impactful on the strategy of each of our investments in order to bring added value and reinforce the overall business model and growth potential.
We maintain a high degree of flexibility in the choice of the sectors in which we invest as long as they respect our ESG policy. We rather remain focused on the merits and perspectives of each company. Our network of experts allows us to quickly understand the specificities of each sector and to anticipate evolutions.
Europe and United States
We focus our sourcing on companies with headquarters based in Europe or in the United States.
We seek out companies where we can make a real difference. Across diversified industry sectors, our partnerships are with companies that demonstrate potential for accelerated growth and strong strategic vision with an ambition to unlock value.
The following factors are therefore our key investment criteria :
Favorable market dynamics
We seek to invest in companies which:
Sustainable competitive leadership
We focus on companies which have superior business models and market positions that enable them to grow faster, attract talent, and create value while comprehensively embracing all key and relevant ESG topics.
Strong management and governance
We invest in companies led by seasoned and calibrated management teams who are deeply financially committed. Our investments have governance structures which reinforce the alignment between all stakeholders and optimize their contributions to value creation.
We invest in companies with tangible growth vectors, high free cash flow conversion, and attractive margins. This economic profile enables these companies to provide a compelling risk-adjusted return, and also gives the possibility of investing further in their growth or generating an annual cash return for shareholders should we remain invested for an extended period.
Multiple actionable levers for accelerated growth and exit optionality
We seek out companies where the acceleration of value creation is possible, credible, and supported by multiple and actionable drivers. These companies should have a true strategic value which provides multiple exit options and offers a downside protection.
We have a history of investing responsibly across geographies, sectors and business strategies. Providing both capital and expertise is the essence of our committed ownership approach, which allows us to support businesses in achieving sustainable growth and adding stakeholder value over the long-term.
Our investment philosophy is based on the following core principles :
Flexible investment horizon
Characterized by an entrepreneurial family background and an 'evergreen' structure, we are a committed and supportive shareholder with a flexible investment horizon. While none of our portfolio companies are strategic to Cobepa and destinated to be held indefinitely, our flexible investment horizon offers companies the possibility to implement transformational projects to drive medium and long-term returns.
Relationship based on partnership
We seek to establish a real partnership between management and ourselves, based on shared business values, ethics principles and aligned interests of all parties towards the successful execution of the jointly agreed business plan.
'Hands with' approach
Cobepa is a 'hands-with' type of investor, implying that we do not get involved in day-to-day management, but remain closely engaged and committed to support the company and its management to attain the goals set out in the business plan and realize the agreed equity story.
Added value investor
We help our portfolio companies choosing the right priorities and speed of action. We support them in their growth endeavors by closely monitoring M&A activity and opportunities, harnessing market intelligence gained through our network and shareholders, and supporting them in analyzing and executing transactions.
Responsible financing structure
Having a resilient business model goes hand in hand with a resilient balance sheet. We wish to invest in transactions with moderate leverage that allow our investments to be primarily focused on their business and to distribute dividends.