At Vendis, we are very focused on what we’re good at, what we like to do, and where we’ve built track record, that is building and investing in small to medium-sized companies in the European consumer sector that are well positioned for value-creating growth or transformation.
Consumer sector specialization – Sector specialization is the cornerstone of our investment strategy. Our industry focus allows us to:
- develop in-depth knowledge of the various consumer sector verticals and the key value drivers and trends associated with each;
- have a shorter learning curve in understanding and evaluating investment or business opportunities;
- see growth and transformation as our prime value drivers, ahead of financial leverage;
- talk business rather than mere financials with the entrepreneurs in (prospective) portfolio companies;
- maintain an unrivalled network of contacts and other valuable resources to help our companies grow faster and with less risk;
- leverage information, insight and experience across our portfolio companies.
As a sector specialist, we are particularly excited about the consumer sector. We believe consumer branding is one of the few true competitive advantages, along with scale, proprietary technology and network externalities. The consumer sector is not only very large and active, it has an abundance of fragmented growth niches and innovating business models, capitalizing on fundamental underlying trends. Most of all, it is the sector we know and love!
Focus on small to medium-sized companies (SMEs) – The companies we invest in typically generate consumer sales between 10 and 120 million Euro and have an operating cash flow (EBITDA) between 2 and 15 million Euro. We believe SMEs are particularly attractive because they often provide significant value creation potential. The companies we invest in are either entrepreneurial players in new, up-and-coming segments, innovators in more mature markets, or established leaders in small niche markets. Our focus is not just on growing those companies, but also on building the teams and scaling the companies to help them reach the next stage of development. Our sector specialization is key in putting this SME-focused investment strategy into effect. By leveraging our industry experience and network, we are uniquely positioned to identify and help realize these opportunities.
Value-creating growth or transformation – We encourage a long-term perspective and want our partner companies to invest for profitable growth. We accommodate the financial structure of our portfolio companies accordingly, giving priority to high return growth ahead of high financial leverage. International growth may be part of this agenda. Many of our partner companies have a strong international orientation. They distribute their products across Europe or even on a global basis. We encourage this international mindset and nourish the international relationships and networks we have built over time. We also like to unlock value by transforming shareholder or business situations, assuming that the underlying economics are attractive. We actively seek complex situations that other investors may avoid, but where we can identify substantial value creation potential.