Our ambition is to enable growth and value creation, generating superior risk-adjusted returns on a growing portfolio.

Ambition

Value creation

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 reorganisation of the capital structure. Bright Capital seeks to structure financing packages with covenants and other structural safeguards.

Responsible investments

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.

Bright Capital ESG Integration and Investment Stewardship

Investors

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).

Strategy

Private Credit 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 a long-standing loan structuring 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.

Companies

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 €5m and €30m (ability to partner for larger deals)
  • No venture debt; no real estate 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 retrenchment of banks, tax and accounting rules, market structures, capital inefficiencies, and transaction complexity (e.g. carve-outs, post insolvency financings, etc.).

Products & Purposes

As a long-term and patient investor, we leverage our flexibility, origination and structuringcapabilities to meet the companies’ financing needs across first lien loans (senior, unitranche, stretched senior) and second lien loans.

Uses of funds may comprise acquisition financings (LBOs, MBOs/MBIs, corporate acquisitions, buy-and-build), refinancings, dividend recapitalizations, corporate successions, reorganisation of the capital structure and shareholder realignments (carve-outs, spin-offs). 

Investment Philosophy

Our capital solutions are based on Independence, Flexibility, Reliability and Entrepreneurship.

Independence

Our culture thrives on collaboration and teamwork. We take pride in our ability to cooperate with companies and managers 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.

Flexibility

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 the companies’ needs, whilst aiming for a high closing certainty in favour of the companies.

Reliability

As a reliable partner for companies, managers and sponsors we help to fill funding gaps in lower mid-market transactions ensuring a streamlined, focused as well as cooperative and transparent investment process.

Entrepreneurship

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.

    Any question?

    Bright Capital Investment Management GmbH

    T +49 (0) 69 348 7759 80 − mittelstand@brightcapital.de
    Große Bockenheimer Straße 43 − 60313 Frankfurt am Main

    Please reach out to our investment team any time.

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