Our funds provide a “liquidity solution” – both to the investors seeking an early exit and to the portfolio companies and the shareholders they leave behind. To the sellers, we offer a dependable, discreet and timely way out and pay cash for their investments.

Aside from plain-vanilla sales, many inquiries we receive are “special situations” and ask us to solve unique problems that the vendor, the company or other stakeholders may not be able to deal with on their own. We pride ourselves on addressing these in a way that is both creative and dependable.

For the investments we buy, which become our portfolio companies, and for their remaining syndicates, we more than fill the financial void left by the seller. We are a strong and dependable financial backer, as well as an active contributor that is solely focused on value creation.  We are often also a “trusted advisor” to management and co-investors, supportive of the vision and, vitally important, with the financial and intellectual resources to fund and realize it.

As many vendors are concerned about what might happen post-sale, past experience has shown that our funds have consistently been an excellent “new home”.

We buy from corporate, financial, private equity and private sellers all over the world. Thanks to our structuring expertise, we customize solutions for each seller and bring tangible improvements over the standard approach other buyers typically take.

Investment opportunities we look for have some of the following attributes:

  • High-quality businesses in late-stage, growth equity or the lower-end of the middle-market.
  • Meaningful business size and maturity, with solid revenue momentum (> €10m revenue) and a strong market position.
  • Profitability or at least a clear path to profitability.
  • Clear potential exit routes.
  • Operating in growth markets with scale, e.g. TMT (IT, Semiconductors, Communication, Digital & Media) as well as Cleantech and Medical Technology (but: no Life Sciences).
  • Strong management teams with the vision and skill set to create value.
  • Headquarters in Europe, Israel or North America.

 

Our typical investment is €2-6m per company – and more if the opportunity presents itself. We focus on significant minority positions and, once invested, are interested in expanding our stake through further secondary purchases. We welcome “stapled” transactions, i.e. combining primary and secondary components.

We are open to single-company transactions as well as buying multiple, from 2-3 to 20+ investments in a single portfolio acquisition. We have the ability to syndicate larger deals through co-investment schemes.

Directs are complex transactions, significantly more so than primary investments, and vendors often do not recognize problems until late in the process, i.e. until after the intention to sell or company-privileged information may have leaked already. In consequence, the risk of business, financial and/or reputational damage is high.

Working with a specialized partner like us materially increases the probability of success – because we bring the know-how, preparation and focus that are necessary to consummate a transaction both quickly and in strict confidence.

Since Cipio’s foundation in 2003, we have done many Directs, from single assets to large portfolios, across multiple jurisdictions, and built a knowledge base, most of which cross-border, that is unrivaled.

Vendors greatly benefit from this experience through accelerated decision-making and time-to-closing:

  • We have a very comprehensive understanding of issues, major and minor, in Directs and know how to fix or bridge them – from pricing to structure to tax, legal and regulation.
  • Our due diligence processes are tried and tested and our teams are “safe hands” at them. This enables us to reach the relevant conclusions in a timely manner and without undue distraction for vendors and portfolio companies.
  • We are experts in our target markets and geographies and are international, multi-lingual and fully resourced in Europe and the US – and thus able to quickly execute both local and cross-border transactions, regardless of a seller’s location.
  • We manage discretionary funds and have ample dry powder for initial and future investments – and our mandate allows us to carry out large to small deals initially, as well as follow-up investments over time.
  • Our structuring competence unlocks measurable benefits for sellers, e.g.  tax, accounting or otherwise – and that means a more favorable outcome overall.

 

Last but not least, we have a reputation for straightforwardness and dependability. As a matter of principle, we always partner with sellers and bring a set of skills and expertise to the table that really helps solve problems – our long-standing track record and references prove it.

Our funds provide liquidity to the following groups of vendors:

  • Financial Institutions
    – Balance sheet clean-ups and focus on core business.
    – Hedge funds exiting the direct technology business.
    – Mergers and industry consolidation.
  • Corporate Venture Investors
    – Direct investing going from core to non-core.
    – Mergers and changes in strategy or management.
    – Passive and often not willing or able to participate in follow-on rounds.
  • Private Investors and Management
    – Founder-Shareholders wishing to exit part or all of their shareholdings.
    – Private Investors looking for early liquidity.
    – Business Angels needing to rebalance their investments.
  • Venture Capital and Private Equity Firms
    – GPs selling fund tail-ends.
    – GPs exiting the business or aligning portfolios with new investment strategies.
    – Funds needing liquidity to support other investments.

 

We are among the most experienced and well-capitalized purchasers in the market. We aim to be responsive, efficient and ever dependable in our interactions with sellers. The same principles also apply as we execute transactions and in all dealings with sellers and portfolio companies post-acquisition.

The majority of Directs are structured as simple purchases for cash. Customized structures such as “strip-sales”, “earn-outs”, “LP roll-overs” or “annex funds” can be readily arranged, thanks to our in-house expertise, as can joint partnering options for fund managers that seek additional resources for their portfolio.

We welcome all inquiries and guarantee a prompt response and absolute discretion at all times.