Co-Investment

Major buyout transactions involving companies valued at over €500m often require us to team up with other investment funds who also invest in the deals. To complete these transactions, leading US or European funds seek to partner funds that have a strong local presence with a view to increasing the investment volume and generating effective economies of scale in the countries where the deal is taking place.

AXA Private Equity regularly participates in such deals, particularly in France, where we are boosted by sought-after expertise in structuring buyout transactions, a major network of business contacts and a leading reputation. In 2005, we established a Co-Investment fund designed to take equity minority interests in large buyout deals backed by an experienced team.

Approach

• Minority interests purchased in major LBOs in Europe and USA alongside high quality investment funds.
• Investment of up to €60m per transaction, or even up to €300m if additional funds can be raised from the main unit-holders of the dedicated funds
• The investment team set up a diversified portfolio by sector, country, volume and type of transaction.
• Members of our Management Board and senior members of the Funds of Funds team on the investment committee contribute their experience.

Criteria

• Enterprise value over €500m in France and Germany, €150m in other countries.
• A leading market position in the sector concerned with a track record of strong cash flow and earnings.
• High quality management team who are highly focused on results of the deal.
• Clear potential for operational value creation.
• Realistic business plan with a time limit and clearly identified exit options.
• Acceptable legal structure for the minority investor with the usual legal safeguards.