Investment
strategy

Sparring Capital acquires majority stakes in unlisted SMEs with the aim of accelerating their growth as part of a long-term value creation strategy.

The companies in which we invest have the following characteristics:

– Turnover > €10M
– EBITDA > €2M
– Strong market position
– Solid fundamentals and a history of profitability
– Clearly identified growth potential feasibly achievable in our investment cycle (5-7 years)

Although our investment strategy is free of any sector-specific constraints, we have developed an excellent knowledge of value-added BtoB services and specialised distribution. We devote the time and resources essential to understanding both the challenges facing companies and their potential with a view to establishing with management an ambitious and realistic value creation programme. Investing in companies led by talented and ambitious management teams is more important to us than the specific sector of activity.

We favour the so-called “Management Buy Out” model, which consists in relying on the management team in place, but we also invest in companies where the ongoing management structure remains to be defined (“Management Buy In”).

We generally invest between €7m and €15m per project, but existing co-investment agreements with our financial partners mean we can significantly increase our intervention capacity when necessary.

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