We invest in rapidly growing companies that have reached an inflection point where a growth equity investment in combination with domain knowledge and active support can create significant value for all shareholders.
We believe that to be successful in adding sustainable value to our portfolio companies, we need to maintain a clear focus in a rigorous manner. We have built a deep track record that is repeatable in the following core focus areas:
Niche market leaders / hidden champions
We invest in companies that are, or have the ability to become, niche market leaders with proven and profitable business models in their core activities, and that are active in growing markets with healthy dynamics. These companies have a unique service or production model that is defendable in an industry we know well.
Lower end of mid-market in Benelux and Germany
We invest in companies that typically have a size of €15m to €150m enterprise value with sufficient room to mature and grow. The majority of business activities of the company are in the Benelux and Germany, but we have flexibility outside our core regions in industries we know well. Our equity investments range from €10m to €40m (with the capacity to access and deploy higher amounts).
Ability to professionalize and grow
We support our companies by providing both capital and expertise, whereby we aim to create high-performing sound companies as a basis to accelerate top-line growth. Examples of typical growth strategies that we have successfully supported are: (i) international expansion; (ii) roll-out of a proven concept; and (iii) buy-and-build platforms and a combination thereof.
Partnership with management or founder
We support management buyouts, family succession and corporate divestiture situations where we can work in partnership with strong and committed management teams or founder owners that have a substantial financial stake in the company. The investments are mostly structured as a combination of brining new money into the company and replacing existing shareholders, whereby we are willing to take minority positions (of at least 40%).
Avedon Capital Partners was founded in 2003 as part of NIBC, a merchant bank based in the Netherlands. While at NIBC the team invested over €250m from the balance sheet and managed an independent fund, Avedon I, with €300m of commitments raised in 2007. In 2011 the partners acquired 100% of the management company and raised Avedon II, with €188m of commitments. In 2017 Avedon raised Avedon III, with €300m of commitments provided by international institutional investors and a group of senior executives residing in our two home markets – the Netherlands and Germany.
The investment team consists of 14 investment professionals operating from offices in the Netherlands (Amsterdam) and Germany (Düsseldorf), where the team has been present since 2007. The investment team is supported by a General Counsel, a CFO/Head of Investor Relations, an Investment Controller, Office Support and a Supervisory Board.
Our commitment to sustainable growth
Sustainability and efficient growth can go hand in hand, as shown in nature by how plants such as the sunflower grow following the mathematical Fibonacci sequence. The nodes of the disc flowers are organised in Fibonacci spirals on the flower base, 34 to the left and 55 to the right, 34 and 55 being two numbers from the Fibonacci series. Each separate spiral forms the growth path of a seed ending in a thriving disc flower bud.
The sunflower displaying the Fibonacci sequence serves as a symbol for efficient sustainable growth, which is a guiding principle for Avedon, deeply anchored in our roots. Sustainable growth guiding our values, the Fibonacci-sunflower has become a symbol for Avedon’s values. These are the following:
Strive for excellence
Develop through mentoring & training
Innovate through experimentation
Focus actions on impact towards mission/vision
Act with entrepreneurial spirit - be curious and explore
Get things done
Strive for efficiency – less is more
Keep structures and processes simple
Have a bias to act
Respect scarcity of resources
Live meritocracy, not hierarchy
Start with trust
Act as one team, one portfolio
Bring people together
Be respected & trusted partners
Speak up outside and inside, but listen first
Dare to be vulnerable
View constructive dissent as key to progress
Give & seek honest feedback
Be accountable – do as you say
Our commitment to sustainable value creation and social responsibility
Avedon recognizes that it operates in a complex world, where natural resource constraints, climate change and the often conflicting needs of various different stakeholders are rapidly changing the global business environment. We strive to manage these challenges actively in order to be successful over the long term.
Through the conduct of their everyday business operations, our investee companies have an impact on society and on the environment. As an investor with a long-term horizon, we believe that we can make an important contribution to the promotion of both sustainable developments and in addressing the environmental, social and governance (ESG) issues surrounding our investments. Within its sphere of influence, Avedon is committed to making a positive contribution towards a sustainable society for future generations. In addition, it is our strong belief that companies that incorporate sustainability as core part of their strategy and enforce it in their operations, create the ability to outperform and generate higher returns for all stakeholders.
We strive to be recognized for our ethical and responsible governance approach and expect our portfolio companies to adhere to high standards of business ethics and comply with all relevant laws and regulation. Avedon is a member of both Invest Europe and NVP.
We recognize that the employees are key to the long-term success of our investments and we encourage human resources practices that value and respect all employees.
We strive to reduce the environmental impact of our portfolio companies through energy efficiency and sound resource management.
ESG embedding processes
ESG risks and opportunities are identified and managed by embedding ESG considerations into each step of our investment process.
As active owners, through active dialogue we inspire and encourage the companies to make ESG a core element of their strategic goals.
We promote transparency and will inform our stakeholders on a regular basis on the relevant ESG issues of our investments and the way we have implemented our ESG Framework.