AI Magazine Issue 7 2018

36 Acquisition International - Issue 7 2018 Marco Brockhaus has been well known for investment excellence in Germany’s mid-cap market for the better part of two decades. After three highly successful fund generations, the Frankfurt-based founder of Brockhaus Private Equity and his acclaimed team have recently opened a new chapter by launching BCM (Brockhaus Capital Management) AG, a German stock corporation designed to acquire and hold outstanding companies for the long term. Recently, we spoke to Marco to discuss more about the firm and the exceptional approach they provide. CM is currently building up an investment portfolio of highly profitable, easily scalable and fast-growing innovation and technology leaders. The firm has announced that, once this has been completed, it will seek to broaden its investor base via an IPO. BCM AG (www.bcm-ag.com ) was established as a distinct alternative to the standard Private Equity model: What do you see as the key benefits of moving away from a fund-based approach? As a holding company based on shares, BCM is free from the external constraints inherent in the fund-based model, and therefore much better suited to realize the full value of its investments. Private Equity funds often have no alternative to selling portfolio companies prematurely because of their rigid time-scales. However, the strategy we are pursuing with our new structure is aimed at continuously raising the value of our portfolio Company: Brockhaus Capital Management AG Address: Thurn-und-Taxis- Platz 6, 60313 Frankfurt am Main, Germany Phone: +49 (0) 69 20 43 40 90 Fax: +49 (0) 69 20 43 40 971 Email: [email protected] Website: http://bcm-ag.com Investing in Innovation Leaders B 1712AI94 companies over the long run. This is the reason why we have launched BCM. Another major advantage of BCM over the Private Equity model: Following our planned IPO, our investors will further benefit from the fact that an asset class that used to be illiquid will finally become fungible. How many investments have you realized out of your three existing Private Equity funds? And how successful have they been? Over three Private Equity fund generations, we have invested in a total of 23 companies. From the moment when we decided to dedicate ourselves exclusively to buy-out and growth investments, we have achieved an average gross money multiple of 2.2 and on average a gross annual return of 43 per cent (IRR). Thus far, your focus has been strictly on fast- growing technology firms? Will you continue with this approach? For many years, our investment strategy has served us extremely well and has enabled us to assist a large number of companies in achieving extraordinary growth. In the light of this, we are determined to continue exactly as before, albeit now from a different investment vehicle and within a long-term timeframe and a stronger focus on majority acquisitions. Innovation and technology leaders are cut out for our proven approach, not least because of their unique and very distinct features: These include strong differentiation from existing and future competitors, market leadership in a clearly defined niche, above-average growth rates and high profitability combined with low capital intensity. This is the investment focus that has allowed us to flourish for 18 years. And there is more to come, as far as we are concerned, since BCM has already raised ca. € 50 million to date and will soon make its first acquisitions. Investing in Innovation Leaders