- EMH Partners closes first growth fund at €350 million
- Another €350 million available through co-investment programme
- Investments in attractive growth industries: above venture funds and below traditional buyout funds
- Equity and digitalisation expertise by entrepreneurs, for entrepreneurs
Munich, 28. 06. 2017. Munich-based private equity firm EMH Partners has successfully finished fundraising for its first growth fund. The EMH Digital Growth Fund closed at a volume of €350 million, which makes it one of the largest funds in the European growth segment. Including a co-investment programme, EMH Partners commands a total of €700 million in investment capital, which is dedicated to the digital transformation of small and medium-sized enterprises (SMEs) in Europe.
“Digitalisation is putting many business models to the test, especially among SMEs. As next generation investors, we want to help these businesses take full advantage of their digital potential,” says Maximilian Kuss, Managing Partner of EMH Partners. “Through the EMH Digital Growth Fund, we are not only doing our part to counter the lack of growth capital in Europe, but we are also joining forces with our investors to contribute to the digitalisation of the European SME sector.”
€10 million to €100 million per investment
In its role as a growth investor, EMH Partners focuses on the attractive market segment above venture funds and below traditional buyout funds. Target investments include SMEs from various industries whose business models have already proven successful in the market. The regional focus is on Europe, particularly the German-speaking regions. The fund only invests equity and pursues a long-term build-and-scale strategy, holding investments for five years on average. The size of the stake in a company is flexible in principle, though the fund primarily targets minority shareholdings. The amount per investment ranges from €10 million to €100 million.
By entrepreneurs, for entrepreneurs
“We do not invest in start-ups. Instead, we focus on companies already turning a profit or on the verge of breaking even which harbour great potential for growth and digitalisation,” says Sebastian Kuss, Managing Partner of EMH Partners. “As entrepreneurs, we know from first-hand experience what the needs of our portfolio companies are and how critical speed and flexibility can be. This experience has shaped our investment philosophy. In the spirit of partnership, we offer our portfolio companies our digital expertise and network. By doing so, we create added value, which goes far beyond just providing capital for the companies we invest in.”
European money for European companies
The EMH Digital Growth Fund was significantly oversubscribed. The capital providers include high-profile institutional investors, such as pension funds, sovereign wealth funds, foundations, entrepreneurs and large family offices. European investors contribute around 90 per cent of the fund’s capital, with more than half of them coming from German-speaking regions. The employees of EMH Partners have also invested a two-digit-million amount in the EMH Digital Growth Fund.
Founded in 2010, EMH Partners today employs a staff of around 20 professionals in Munich and London. The team consists of entrepreneurs and financial experts who share a passion for digital progress. The founding partners Maximilian and Sebastian Kuss have been active as entrepreneurs in the digital economy for 15 years.
EMH Partners has a top-notch industrial advisory network that consists of entrepreneurs, business leaders and industry experts. “The EMH team has an exceptional track record. The successful fundraising efforts not only confirm their previous success, but also underscore how attractive the business model is,” says Manfred Seitz, Managing Director at Berkshire Hathaway. “I’m very excited to support EMH Partners’ continued development in my role as an industrial advisor.”
All industrial advisors possess decades of industry experience which perfectly complements the business acumen and digital expertise of EMH Partners. “With its investment philosophy, EMH Partners has its finger firmly on today’s pulse. The fund serves as a powerful partner to SMEs, most of which still face the task of tackling digital transformation,” says Peter Bauer, Chairman of the Supervisory Board of Osram Licht AG and member of the Supervisory Board of Infineon AG. “Entrepreneurship is an essential part of the DNA of EMH Partners which gives them the necessary credibility with SMEs.”