Our ambition is to enable growth and value creation, generating attractive risk-adjusted returns on a growing portfolio.
Our Private Credit strategy provides access to investment opportunities through a sustainable and value-oriented approach that seeks attractive risk-adjusted returns and minimizes the risk of capital losses. We partner closely with our SME relationships to understand and tailor financing solutions to meet various financing objectives including acquisitions, refinancing, growth financings, leveraged buyouts, dividend recapitalization and restructuring. Bright Capital seeks to structure financing packages with covenants and other structural safeguards.
For us, responsible investing means supporting sustainable businesses with excellent management teams that are committed to serve all stakeholders, including employees, owners and our investors. Responsible investments aim to incorporate environmental, social and governance factors into investment decisions, to sustainably manage risk and generate sustainable, long-term returns.
At Bright Capital, we actively encourage our team and our partners to deliver excellent performance every day based on professional expertise, personal commitment and diversity. Our investors represent German state and promotional banks, European pension schemes and family offices. They are strongly dedicated to the lower mid-market and the German-speaking countries. Mandated by our investors, we focus on long-term risk-adjusted returns and a sustainably growing portfolio. We are passionate about supporting small and medium-sized enterprises with an entrepreneurial approach, but as hands-off investors. Bright Capital is a member of the German Private Equity and Venture Capital Association e.V. (BVK) and of the Bundesverband Alternative Investments e.V. (BAI).
Private Capital for SMEs
We provide one-stop capital to SMEs, which we believe are underserved by traditional lenders, across a wide range of industries. As part of our strategy we are able to invest up and down a company’s capital structure in situations where bespoke financing solutions generate substantial value-add.
Bright Capital’s investment strategy relies on deep engineering experience, comprehensive due diligence and passive but profound portfolio management. We are able to provide individual and tailored financing solutions and offer enhanced execution certainty to both sponsors and management teams, further supported by a lean and timely investment process. Typically, we either lead the transactions in which we invest or are single lender and seek board representation with the aim to enhance our ability to achieve our investment strategy, whilst being a more value-added partner for our portfolio companies.
Selectively we partner with third-party-led senior and subordinated debt financings, review portfolio purchases and opportunistically purchase discounted debt positions.
Bright Capital is a value-oriented, long-term investor, targeting companies with a history of resilient cashflows, demonstrated competitive advantages as well as excellent management teams. To capitalize on outperformance opportunities, we focus on market leading companies in the DACH region with identifiable growth prospects and resilient free cashflow generation potential. Our target companies are typically either private equity owned, owner-manged or family businesses.
With our flexible approach we support companies across a wide range of industry segments, adapting the different components of our returns to the target companies’ profiles.
Typically, our investments fulfil the following characteristics:
- Established small or medium-sized company within the DACH region
- Operationally sound business model backed by a seasoned management team
- Demonstrable track record of profitability and cash flow generation
- Financing requirements between €3m and €15m (ability to partner for larger deals)
- No venture debt
Additionally, we offer capital for complex investment opportunities outside of the traditional corporate debt market. Complex characteristics include amongst others companies that cannot tap traditional financing sources due to regulation bank disintermediation, tax and accounting rules, market structures, capital inefficiencies, and transaction complexity (e.g. carve-outs, post insolvency financings, etc.) and limited size.
Products & Purposes
As a long-term and patient investor, we leverage our flexibility, origination and engineering capabilities to meet our client’s financing needs across first lien loan (senior, unitranche), second lien loans, mezzanine and selected equity type investments.
Bright Capital arranges innovative and flexible financing packages – with uses of funds comprising acquisition financings (LBOs, MBOs/MBIs, corporate acquisitions), refinancings, dividend recapitalizations, corporate successions, restructurings and shareholder realignments (carve-outs, spin-offs). Additionally, we have an established track record of providing additional funding for working capital as well as organic and acquisitive growth strategies.
Our culture thrives on collaboration and teamwork. We take pride in our ability to cooperate with our clients to drive knowledge, insights and enhanced decision making over the lifetime of our investments. However, with a financing solution from Bright Capital, you will remain independent and we will not interfere on an operational basis or make use of majority shareholder rights.
As a credit investor we provide long-term financing packages with the ability to be flexible and leverage individual and unique structures to meet our clients’ needs, whilst aiming for a high closing certainty in favour of our clients.
As a reliable partner for our clients we help to fill funding gaps in small- and lower mid-market transactions ensuring a streamlined, focused as well as cooperative and transparent investment process.
At Bright Capital we focus on maintaining an entrepreneurial spirit, where individuals can act with a degree of autonomy and sharing of information and innovative ideas is encouraged. Hence, we want to partner with ambitious businesses to support their growth and value creation.
Please reach out to our investment team any time.
Matthias Mathieu — Managing Partner
T +49 (0) 69 348 7759 80