OFI Private Equity operates on the small- and mid-market buy-out segment, and is ideally placed to become France's leading specialist player in the secondary LBO market.
Investment Philosophy
OFI Private Equity invests in equity capital, quasi-equity capital and via mezzanine financing, giving preference to majority shareholding positions alongside significant reinvestment by company management teams.
Companies are selected by applying a systematic approach targeting entities with strong growth and profitability. OFI Private Equity offers assistance with their business development and value creation strategies (EBITDA growth, debt reduction, mezzanine yield) in order to optimise the return on investment in portfolios under management.
Management Report
During the course of the 2006 financial year, OFI Private Equity made five investments in secondary LBOs (Axson, Mors Smitt, Credirec, Marco Polo and Financière de Siam) for a total of €25m, and carried out three partial or total divestments (SES, IDPC and Auto Escape).
The LBO market has renewed itself through strong growth in secondary LBOs, the area in which OFI Private Equity specialises, representing in 2006 almost 40% of transactions on the LBO segment.
Given the shareholdings already acquired (€40 million in 18 months) and the investment programme underway (eight transactions), OFI Private Equity feels that it already occupies a major position in this sector. The entity aims to double its assets under management by the end of 2008, notably via a public offering by OFI Private Equity Capital, a listed investment fund which it has been managing since August.
corporate finance,
financial structuring,
equity capital investments,
mezzanine financing
