Private Equity

GED leads the Private Equity investment in the Spanish middle market segment, with a well-defined strategy and proven track record. The firm has a proven ability to originate, execute, finance and divest assets in diverse economic environments, as well as solid operational knowledge and experience in internationalization strategies of the portfolio companies. GED’s Private Equity strategies are Buyout, Healthcare and Secondaries. 

Buyout

Buyout funds invest in the acquisition of companies operating in the middle-market segment aiming to transform them into leaders in their respective sectors, applying growth and sector consolidation strategies (Buy&Build). 

GED’s investment team relies on an extensive network of professionals and collaborators to identify and capture investment opportunities, even before they come to market on a competitive basis. Approximately two-thirds of recent acquisitions have been proprietary and directly generated. 

Investment Criteria

Majority equity stakes in companies with an EBITDA of over 3 million euros and operating margins of over 15% operating in the following business verticals:

  • Industrial: both manufacturing and professional services companies with high added value.
  • Consumer goods: Mainly companies directly or indirectly involved in the food value chain.  
  • Healthcare: health-related products and services.
Investment

These funds invest their portfolios in 7-10 companies, being diversified by sector, and without exceeding 30 million euros per transaction. In addition to paid-in capital, each investment may be combined with thirdparty debt acquisition, always at prudent levels, and/or with resources contributed by co-investors. 

The Buyout funds’ strategy is based on the following levers of value creation and qualitative transformation: 

Optimising the company’s strategy and boosting internationalisation and the development of new products/services and markets.

Organic growth

As the result of applying aBuy&build” strategy to consolidate markets and extend the value chain of each portfolio company, while applying a careful methodology for integrating companies.

Inorganic growth

Through the professionalisation of management teams, digitalisation, integration of management systems and the implementation of responsible ESG policies.

Qualitative value creation

Through the use of the GED Group’s extensive network of contacts, developed over more than 25 years of experience in different sectors.

Operational support

Implementation of best-practices that contribute to making the company’s financial profile more robust and contribute to the business growth.

Financial optimisation

At the end of the investment period, GED  aims for companies to have become leaders in their sector and to increase their turnover, resulting in greater visibility for the acquisition by larger investors. 

Healthcare Growth

Healthcare fund management has a focus on healthcare companies at a crucial growth stage to help scale and unlock their full potential.

Investments are focused on companies with low scientific and technological risk at or very close to commercialisation. These are companies that have overcome regulatory uncertainties.  

The team working on this strategy has a long track record of investing in Healthcare and an extensive network of experts in the most dynamic and attractive healthcare sub-segments. 

 

Investment criteria

The Healthcare strategy invests mainly in:

  1. Minority stakes with a lead investor mindset.
  2. Operating in the following business verticals: pharmaceuticals and biotechnology, diagnostic solutions, precision medicine and medical devices, AI & Big Data for healthcare applications and digital therapies and diagnostics, scale-up industrial production projects for healthcare applications, scientific services (CRO, CDMO), and care services.
  3. Companies with low scientific/technological risk and minimal regulatory uncertainties at, or very close to, commercialisation phase.
  4. Mainly in the Iberian Peninsula.
Investment

Per operation, this strategy will invest 5 to 15 million euros, in addition to co-investment with other Growth Capital funds.  

The Healthcare strategy applies different levers for value creation and qualitative transformation:

Scale-up for global expansion through investment in production facilities and development of commercial strength. 

Scale up

Strategic guidance on new products and technologies for therapeutic and diagnostic uses.

Strategic guidance

Inorganic growth through complementary acquisitions.

Inorganic growth

Operational and financial improvements increasing profitability.

Operational and financial improvements

Professionalisation of the management team by reinforcing leading positions.

Professionalisation

Secondaries

Funds investing under the Secondaries strategy aim to buy and sell existing investment assets, e.g. by acquiring portfolios of third party (industrial or financial) funds – direct secondaries, rather than making direct investments in companies. 

In recent years, secondary transactions have become more sophisticated and adapted to the needs of fund managers, investors and portfolio companies. 

In this development, GED’s investment team has been identifying and implementing secondary structures that enable investments in attractive opportunities while anticipating liquidity for its investors, occasionally. 

The team has proven experience in executing different types of secondary operations: 

A fund known as “tail-end” was set up, which consisted of the sale and purchase of 5 companies. International investors participated in the configuration of the new fund.

Ged Iberian B

The fundraising of the fund was completed through a “late-primary” or “top-up” operation, where an international investor invested in the fund, which already had 5 investee companies.

GED V

A complex operation was designed and executed, resulting in a follow-on fund with specialist investors, which allowed the acquisition of a company to provide continuity to a growth project over the next few years. 

GED Strategic Partnership I