Capvis, a leading European private equity firm, has announced a significant shift in its investment strategy. Choosing to forgo further fundraising for its Capvis VI fund due to unfavorable market conditions, the firm will now adopt a deal-by-deal investment model. This strategic pivot includes a sharp focus on businesses requiring succession planning. The decision comes as institutional investors, amid uncertain market dynamics, display reluctance toward new commitments. Consequently, Capvis has also opted to close its Frankfurt office to enhance cost efficiency. Historically, around 75% of Capvis’ platform investments have been in succession-oriented companies, which have outperformed other ventures. This focus aims to mitigate the intensifying competition in the traditional private equity space. Capvis intends to pursue transactions outside traditional competitive auctions and has found favourable outcomes by engaging with strategic buyers instead of conventional PE buyers. Moreover, the firm’s geographical and sectoral focus will remain steady, concentrating on the DACH region, Italy, and Liechtenstein, and sectors like healthcare, industrial technology, advanced services, and software. In conclusion, Capvis’s redefined strategy underscores its commitment to navigating new opportunities while ensuring optimal performance for existing investors.
Private Equity, Succession Planning, Mergers and Acquisitions,Switzerland, Germany, Italy, Liechtenstein, DACH
https://www.capvis.com/en/news/exclusive-capvis-pivots-its-investment-strategy-after-calling-off-fundraise.html