Starting in 1989 with our very first development capital funds through to our latest fund, FCPR Winch Capital, set up in December 2005, our Development Capital team has been a player in a key asset class for private equity investors and has helped to accelerate growth in unlisted companies.
The management team has the recent €250 million FCPR Winch Capital 2 development capital fund at its disposal.
Development Capital involves acquiring interests in established unlisted companies in order to support their business growth. Investments are typically held for three to five years, after which the fund seeks to realise its holding in order to achieve a significant return on the investment.
Edmond de Rothschild Investment Partners applies the following investment criteria and approach :
- Acquisition of significant holdings (10 to 49%)
- Investment in businesses with turnover between €5 million and €15 million
- Active involvement of the investment team through board positions
- The withdrawal/exit process is formalized by contract, in agreement with the majority shareholders.
Edmond de Rothschild Investment Partners thus meets two needs often expressed by entrepreneurs :
- Financing the internal or external growth of their business
- Reorganizing the company’s capital, either by providing an exit for minority shareholders, a partial exit for majority shareholders or by bringing managers into the capital structure.
In technical terms, Edmond de Rothschild Investment Partners undertakes transactions including capital increases, share acquisitions and Owner Buy Outs (OBOs).