Pragma Capital becomes Sparring Capital
Through this name change, the management company specialized in buyout capital confirms its ambition to be a committed shareholder alongside the management teams to accelerate the growth of its portfolio companies.
As a player in “smidcap” equity investment, Sparring Capital is involved as a majority shareholder in French SMEs during buyouts or reorganisation of their capital.
The management company supports managers willing to achieve their company’s growth potential and leadership: clarification of the strategic road map, strengthening and structuring of management teams, organisation of management succession, improvement of steering tools and optimisation of sources of financing. The Sparring Capital team thus plays its role of a professional shareholder by bringing a methodology, expertise and network that the management company has built up over the course of the many transactions completed since its creation in 2002. In addition, trust between partners and consideration of the long-term interests of the companies it supports are core concepts of Sparring Capital’s approach.
Several recent transactions illustrate this expertise:
Acquisition of Cadexpert by TVH Consulting, ERP integrator in which Sparring Capital acquired a majority stake in September 2016;
Acquisition of Immo-Réseau by Propriétés Privées, network of real estate agents acquired by Sparring Capital in May 2015. Led by the new management team and actively supported by Sparring Capital, Propriétés Privées has posted annual growth exceeding 40% over the past 24 months;
Sale of NACC, specialist in distressed debt portfolio management, to the Norwegian listed group B2holding, one of the European leaders in the sector. With heavy involvement from Sparring Capital, the company tripled its turnover from €17 M in 2015 to €45 M in 2018.
Led by Arnaud Leclercq and Denis Catz since 2016, Sparring Capital’s road map is as follows:
Confirm the successful deployment of fund 3 (finalised in November 2016), invested at 50% and which now has good prospects (6 investments completed and 2 sales to date),
Strengthen its position as a leading player in the buyout of “smidcap” companies in France,
Prepare the raising of a successor fund, dedicated to the same market sector (€7-15 M ticket), and of a greater size due to reinforcement of the team underway (a seventh investor will soon join the team),
Examine selectively the opportunities generated by the current sector consolidation: bringing teams together, developing new business.
Denis Catz says: “This new name expresses our wish to develop and challenge our business approach. The company’s human capital is key to our operations. We are the “sparring partners” of our managers, helping them express their potential as champions and achieve their goals“.
Arnaud Leclercq adds: “Whereas many players have chosen to increase in size, Sparring Capital has a two-fold belief: the continuity of an investment strategy is a key success factor. The smidcap segment in which we have chosen to anchor Sparring Capital is characterised by its depth, with a strong dynamic in buyout situations. All advantages which lead to good prospects!“