EQUISTONE NEWS | May 2022

The current global political situation, with its human stories and economic challenges, makes it particularly difficult to consider day-to-day operations and to look ahead. Nevertheless, with a strong team and a clearly defined and well-grounded vision, we are showing stability and a forward-looking approach for our portfolio companies and investors, even in turbulent times.

We are sticking consistently to the new course we have taken and we have added fast-growing technology players to our group of portfolio companies, which have previously mainly been based in traditional sectors. We believe that they have a particular need for professional support on the path to market leadership, and we have much to offer here thanks to our decades of experience. The latest new entrant to the portfolio, cybersecurity provider eperi, is a prime example of these promising tech companies. At the same time, traditional SMEs are seeing a growing need to pick up speed with the digital transformation as well as in terms of sustainability. At Equistone, both developments led to us further institutionalizing the topics of ESG and digitization and strengthening our personnel here as well.

We want to support our portfolio companies the very best we can in their growth and in meeting their ambitions, through our engagement and commitment. This requires a particular spirit in one’s own business, one that I am particularly proud of and one that we want to carry forward into the DACH/NL team, which is growing more and more closely together. At the same time, just like the entrepreneurs, management teams and employees in our portfolio companies we hugely appreciate our collaborative culture in working towards common goals. It is a value that is difficult to compensate for and that will continue to lead us to new successes as the year goes on. 

You can learn more about our projects, new details and the latest developments in our portfolio in this issue of “Equistone News”.

Equistone adds cyber and data security player eperi to its portfolio

eperi GmbH offers the leading technology for scalable, data-centric protection for the use of SaaS applications and cloud infrastructures. eperi’s technology effectively protects sensitive data from being accessed externally when using SaaS applications such as 365 or Salesforce (incl. access by the provider) in compliance with data protection regulations (such as EU-DSGVO, Schrems II) – without limiting the functionality or user experience. eperi is thus a key enabler for companies and users for the secure, data-protection-compliant migration and use of IT and company data in the cloud. 

February 2022 marked the launch of the partnership with Equistone. With eperi we have not just enhanced our portfolio with a European cyber and data security player – the participation also represents another key milestone in building our portfolio with fast-growing, sustainable IT companies.

Strategic purchase marks a strong start to the year: Sihl destined for market leadership in the US 

Right at the beginning of the year, our portfolio company Sihl, a successful supplier of premium coatings for applications in the fast-growing digital printing market, made a major step in its international growth. The acquisition of the US Dietzgen Corporation makes Sihl a leading supplier of coated high-end print media in the US and offers it major logistical advantages there, in combination with its existing US business.

Growth alliance for digitisation: PKS and catworkx strengthen TIMETOACT GROUP

With our stake in digitization expert TIMETOACT GROUP, the spring of 2021 marked the beginning of our increasing orientation towards fast-growth tech companies. Only around half a year later, the first joint purchase took place with the acquisition of transformation expert PKS. Shortly after this the signs are again pointing towards growth: Since April 2022, Atlassian Platinum Solution Partner catworkx strengthens the leading supplier of IT services for SMEs, groups and public bodies.

Three purchases for Belgian full-service provider of end-to-end connectivity solutions: Amadys strongly expands DACH presence 

With three purchases in just two months, our Belgian systems provider for passive network components Amadys has also got the year off to a strong start and significantly expanded our DACH presence: The new arrivals to the Group are the sales specialists for the areas of network and communications technology SKG Netzwerktechnik and Muth Kommunikationstechnik as well as the logistics partner for network operators and construction companies PRO-Kunststoff. Amadys remains on an impressive growth trajectory here – CEO Hein Wilderjans retraces the entrepreneurial vision behind this, and the company’s previous milestones, in a short Equistone interview.

Maximilian Göppert on ESG 

1. Is ESG really such a big thing for the investment industry?
Most certainly – if we want to tackle climate change, pandemics and injustice while also generating growth it is clear that we need to create more sustainable economies and systems. I am convinced that ESG is not just the spirit of the hour, but rather a long-term element of the investment business. Private markets can and must play a decisive role in reaching UN sustainable development goals by driving forward changes on a large scale and at a rapid pace. A lot is already happening here. Soon we will have a standardized global set of ESG metrics and instruments to allow for comparable reporting – to the benefit of all private market participants.

2. What does sustainability mean to Equistone and its portfolio companies?
We have undertaken and achieved a lot in the last decade – our „ESG Review 2021“. illustrates examples of our ESG work. In future we want to address the topic even more strongly at different levels, while also expanding our personnel base. For many portfolio companies, ESG has long moved from the periphery of operational concerns to the centre of their strategic posture. It is recognized as a core value driver as well as an impact driver and is proactively pursued. We achieve competitive ESG advantages with access to the relevant competence, connections and capital. With some portfolio companies we have already achieved industry-leading ratings and developed impact leaders.

3. What role does ESG play within the investment process?
Investments in companies contributing to sustainable development that address requirements defined in the sustainable development goals, and simultaneously exploit the resulting market opportunities, are certain to become increasingly important to our investment strategy. ESG criteria and KPIs are already a key value driver and can therefore certainly influence the purchase price in the event of a sale – depending on how well the topic has been addressed by the companies.

New investment experts: Team grows in Munich and Amsterdam

Successful deals and creative ideas are borne by passionate and committed people . We are delighted to welcome three new dedicated colleagues to our offices in Munich and Amsterdam:

Sebastian Wintgens (left), Director since July 2021, and Mark Feiler (centre), Associate at Equistone since October 2021, are strengthening our Munich team. Sebastian will assume a key role in expanding our presence in the IT sector thanks to his experience in the areas of software and technology-assisted business models. It is a role he already took on from the outset with our new platform acquisition eperi. Mark will mainly support the team with his expertise in the fields of corporate finance and mergers & acquisitions. 

Josh Aalbers (right), Associate in the Amsterdam team since November 2021, will bring extensive experience in the area of investment banking and many years of knowledge of the Benelux market.Together with Hubert van Wolfswinkel, he will pursue new and exciting investment opportunities in Belgium and the Netherlands. 

“SME evolution”: Equistone as a partner for digital transformation

The German SME sector is considered as the backbone of the economy. It produces international market leaders and has its own particular culture and local base. Owners and management teams always see private equity as more than just professional partners. In a recent article on “Equistone PLATFORM+”, Dr. Marc Arens, Alexis Milkovic and Sebastian Wintgens explain why this is particularly important for supporting digitization efforts and for the emerging technology sector and what new potential Equistone has on the market.

Equistone Reinvestment Fund: Equistone Expands Strategy by Issuing New Fund

New fund, tried and tested investments: Anyone who knows us knows that partnerships built up over many years are at the very heart of our work. With the new “Equistone Reinvestment Fund” issued at the end of 2021 we now want to support former portfolio companies that have excelled – thanks to exceptional growth and partnerships with the management teams – in their next growth phase. The focus here is on investments in a balanced portfolio of around five to six minority interests for which the new owner has an interest in Equistone remaining in the shareholder group.

International deals: Numerous transactions in Europe 

A lot has also happened in recent months for our international colleagues as well. This includes, among other things, the majority acquisition of the French aluminium door and gate manufacturer Gardengate, the exits for the marketing technology provider ITG from Birmingham and for the British residential real estate service provider FirstPort, as well as numerous add-on transactions in the portfolio.