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Investment Approach
We strive to partner with distinguished entrepreneurs operating in high-growth and high-ROIC sectors with relevant strategic value.

Approach

We target industries positioned to benefit from long-term drivers (income, aging, health/wellness, and convenience) and companies with a clear potential to extract synergies by executing M&As (by leveraging brand, distribution, and/or reducing SG&A). This focus enables our investments to have health organic/inorganic growth paths as well as potential to exit at a premium valuation to strategic players.

Additionally, by having clear-cut targeted industries, we can develop a thorough understanding about each of them and have a value-added approach with entrepreneurs since the first interaction, creating a differentiated angle when proposing a partnership.

Finally, our focus on middle market allows us to combine (i) vast amount of high-growth / profitable companies with (ii) proven business models with a low mortality rate and (iii) a shift from price-based negotiation to a value-added/collaborative approach when partnering with entrepreneus.

middlemarket

Criteria

Industry

Industry

Combination of top-down, long term drivers – Income, aging, health/wellness, and convenience – with Concept’s team track record.

  • Branded foods & ingredients
  • Human health
  • Animal health
  • Cosmetics
  • Business services
  • Technology
Company

Company

  • R$ 8+ million in EBITDA
  • Potential to unlock value by upgrading management, improving capital structure, accelerating organic expansion, and empowering consolidation
  • Clear exit to strategic players at a premium valuation
  • Passionate management team and entrepreneurs, with significant market knowledge
  • Entrepreneur values Concepts’s role
Geography

Geography

  • Brazil
Transaction Type

Transaction Type

  • Growth equity
  • Consolidation
  • Management/owner buyout
  • Sponsor-to-sponsor
Deal Terms

Deal Terms

  • R$ 50+ million in equity investment
  • Shared control and governance
  • Entrepreneur is a relevant shareholder and the Company represents a significant portion of his/her net assets
  • Potential to 4x – 5x MOIC
What We Avoid

What We Avoid

  • Exogenous, binary, and regulatory risk
  • Greenfield, distressed assets or start-ups
  • Excessive governmental exposure