Wealth & Finance International - Fund Awards 2017

Fund Awards 2017 8 Best Independent PE Investment Firm - Germany Brockhaus Private Equity is an independent PE firm with a focus on innovation and technology leaders in the German speaking regions. Established in 2000, the firm manages and advises funds with a total volume of more than € 285 million. Marco Brockhaus, the founder and managing director, tells us why Germany’s world-beating Mittelstand will continue to offer outstanding investment opportunities for many years to come. Company: Brockhaus Private Equity GmbH Email: [email protected] Address: Thurn und Taxis Platz 6, Frankfurt, 60313, Germany Phone: +49 69 7191 6170 Website: http://www.brockhaus-pe.com In 2017, Germany is expected to be Europe’s No. 1 investment destination for PE, even rising above the UK. What lies behind this remarkable development? Marco Brockhaus: Germany’s stability in uncertain times and its ever increasing status as a “safe haven“ are factors that have not failed to impress investors looking for dependable low-risk returns. The world- beating small- and medium-sized firms that form the backbone of the German economy, collectively known as Mittelstand, have shown themselves to be exceptionally resilient and robust. It is largely due to their strength that Germany continues to be more competitive than most other countries in the EU. Medium-sized companies can be found across the globe. What is special about Germany’s Mittelstand from an investment point of view? Marco Brockhaus: One interesting figure that is worth bearing in mind: Out of a worldwide total of some 3,000 companies recognized as global leaders in their respective industries, around half are German Mittelstand firms. Mostly family-owned and often little-known abroad, these companies are fueled by a distinctive business culture based on perpetual innovation, long-term strategic thinking and responsible management. For investors, however, gaining access to these “hidden champions”, is even more difficult given the location distribution of these companies all over Germany, in bigger towns and on the country side. At Brockhaus Private Equity, we meet this challenge through our strength in proprietary deal sourcing. How does this work in practice? How do you manage to spot and get access to Germany’s “hidden champions“ quicker than other funds? Marco Brockhaus: Identifying and reaching out to those firms is at the FD170006 core of our business. Our institutionalized sourcing process incorporates many different channels of information, including a close-knit network of cross-industry contacts. As a result, we benefit from a steady stream of first-class investment opportunities bypassing middlemen and M&A advisors. Our hugely successful investments in Wirecard and 360 Treasury Systems are perfect examples of what our proprietary deal sourcing technique can achieve. Additionally, from the current portfolio consisting of 5 technology and innovation leaders 4 of them were sourced in a completely proprietary deal situation. What are the key factors behind Brockhaus Private Equity’s outstanding success? Marco Brockhaus: We have been a key player in Germany’s small- and mid-cap buy-out market for more than 15 years. As an independent firm, Brockhaus Private Equity benefits from its solid investor base which includes, among others, pension funds, savings banks, insurance companies, family offices and a public separate estate managed by the German Federal Ministry of Economic Affairs and Energy. A highly attractive annual return rate in line with top PE industry benchmarks highlights our history of achievement, now in its third chapter with the most recent fund, Brockhaus Private Equity III. Do your investments reflect a preference for any particular sector or industry? Marco Brockhaus: We firmly believe in a cross-industry approach. However, all our portfolio companies are high-tech firms with excellent market positions, high profitability and exceptional rates of growth. Brockhaus Private Equity III is on schedule and has already made four investments along those lines: These include the automotive safety component and heat shield supplier J&S GmbH Automotive Technology,