Private equity

Approach to investment: bridging developed and emerging markets

  • We focus on capital development for small and medium size companies.
  • Armat Group was created by entrepreneurs and therefore differs from pure financial advisors.
  • Armat Group is an active investor , with a clear business-oriented strategic vision and an ability to refocus businesses on basic priorities with a particular focus on sales, distribution and business development.
  • Our team is very experienced, flexible and creative. Its major strength resides in its extensive and international business network built over more than 25 years and its ability to leverage this network to produce investment and create new opportunities with leading industry players throughout the world.
  • Thanks to an in-depth knowledge of business environments and decision makers in many countries, Armat Group is in a position to create strong links and business opportunities between developed and emerging markets, through new distribution channels, joint-ventures, vertical or horizontal integration, cross-selling, brand extension or creation, product diversification, new production plants or new points of sale.
  • It is part of Armat Group’s business model to be a facilitator, to bridge pairs of companies coming from mature and emerging economies and to invest in projects involving European, Middle Eastern or Asian partners.

In particular, Armat Group is aiming to bring value at special turning points in the life of the companies, whenever they have to:

  • Expand internationally
  • Look for partnering companies to accelerate their growth
  • Transform themselves from local / family / domestically oriented business to a higher dimension and higher standards
  • Prepare for IPO or last financing round before IPO
  • Refocus their activities on the most valuable / cash generating markets
  • Manage a turnaround requiring financial restructuring and production revival
  • Experience special situations such as generational successions, shareholder conflicts, crisis, distress – where funding from more traditional investment companies and funds would not easily be available due to lack of sufficient guarantees and where traditional investors cannot easily decide to invest because they don’t find the proper type of collaterals.

Positioning : Armat Group targets

  • Armat Group focuses on capital development for small and medium size companies operating in high-value added sectors, characterized by high-quality products.
  • They must show high growth perspectives and a strong potential for international development, together with an experienced management team.
  • Owning a valuable asset is the key, whether it is a unique and proven technology, a specific know-how or a special positioning on the market.
  • Their business model should be robust enough to go through crisis times, and ideally scalable with some recurring revenues.
  • Armat Group is mostly involved in projects where companies have reached a critical size, tested and proven their business model, and are already profitable or showing short-term profitability perspectives and an ability to generate substantial levels of cash, with typical average project IRRs in the 20% to 30% range.

Armat Group focuses on the following types of investment projects:

  • Small and medium size companies
  • Up to Euro 30 million in equity
  • Direct investment in shares, mainly through capital increase, with possible financial leverage
  • Majority share, or minority with strong governance rights
  • Ability to co-invest or syndicate with its network of investment partners when projects require more funding or specific expertise
  • Pro-active involvement into the strategy, no passive investments
  • Typical investment horizon between 3 and 5 years, possible opportunistic approach for shorter or longer holding period
  • Clear path to liquidity / exit strategies at all stages planned from the start

Geographic priorities:

  • Europe
  • Asia
  • Middle East
  • Selectively in other parts of the world (U.S., Latin America, Africa)

Industry focus:

  • Aerospace and transportation
  • Education and education technology
  • Luxury goods
  • Energy and environment
  • Telecommunications, software and information technology (e-commerce, payment system, cyber security, new media…)
  • Infrastructure and logistics
  • On a co-investment basis in other industries and services