Cipio Partners usually invests in companies operating in growth markets with scale, e.g. TMT (IT, Semiconductors, Communication, Digital & Media) as well as Cleantech and Medical Technology.

Experience

Private investments are structurally illiquid and discourage the transfer of ownership before the entire company is exited. This forces investors to stay put for an indefinite period. This structural illiquidity creates pressure on private equity a the time to exit for investments has doubled during the last decade to reach on average seven years - with investors locked in for longer in many firms.

How much do they invest?

A typical investment is:

• €2-6m per company - and more if the business allows it.
• Focused on significant minority stakes between 10-35% ownership. Smaller stakes in strong assets are also possible.
• Through secondary purchases but also in new-money, often “stapled” transaction structures.
• Expressly also in special situations that may require a rapid commitment.

Once invested, they expressly support primary fundings as well as recapitalizations as the business matures. They may further serve as a buyer, over time, of shares from founders, angels, and others as these early investors may eek liquidity in the absence of a final exit.

How do they work?

They have three overriding objectives when investing in a company.

• To provide ample capital, intellectual resources, as well as time for the investment to reach its full potential.
• To assist the management team in growing the business and making it as valuable a possible.
• To prepare and conduct the exit in a value and liquidity maximizing way.

This makes a difference to them

The companies they invest in typically have the following attributes:

• High-quality businesses in late-stage, growth equity or the lower-end of the middle-market.
• Meaningful business size and maturity with solid revenue momentum.
• Profitability or at least clear path to profitability.
• Clear potential exit routes.
• Strong management teams with the vision and skill-set to create value.
• Headquarters in Europe, Israel or North America.