Investment Approach

We unlock value for our investors, companies and communities

Philosophy

Every opportunity is different, and so is our approach.

We create a tailored solution for each partnership instead of offering a particular/rigid/off-the-shelf product. This can mean equity or debt, and is usually a combination of both. Our finance can be standalone or alongside a financial sponsor, and we always ensure the structure aligns us with you. We tend to take a minority stake, so you remain firmly in control.

We can provide a solution to smooth out the cash requirements growing businesses face. For example, our debt can be structured as bullet repayments, allowing you to retain cash. By taking a minority stake we ensure our interests remain aligned, with you retaining control.

Uses of our capital…

ACP – approach

Our Product

Accession Capital Partners (ACP) is a pioneering, independent investment advisory firm, with a focus on Central Europe. Funds we advise provide tailored financing solutions to established mid-market businesses and small and medium enterprises. ACP helped to create and now advises four successful mezzanine funds: Accession Mezzanine Capital I, II, III & IV.

Instrument

A subordinated loan, equity co-investment possible

  • Long-term flexible debt
  • Moderate cash burden on the company
  • Bullet repayment at maturity/exit
  • Alignment of interest with shareholders through equity upside

Ranking

Positioned between senior lenders and equity

  • Subordinated to senior lenders in terms of security and cash payments, both interest and principal repayment
  • Maturities extend beyond senior facilities

Return

Priced between senior debt and equity returns

  • Current interest income
  • Participation in the economic value of the borrower at exit via warrants and equity co-investments
  • Put option to structure liquidity events for ACP

Investment Process

We deploy a multistep process to ensure an efficient transaction completion while maintaining a high standard of quality over the investment evaluation.

Sectors

We are firm believers in adding value. The sectors we cover are therefore a combination of where best opportunities are in our view, but equally importantly, where our industry knowledge and deal experience reside.

Manufacturing

Our team has substantial experience in deals concluded in these sectors, and at ACP level, we have and continue to support: the growth of the sector via transactions such as Norican or PetStar.

Healthcare

Our focus and expertise in the sector have resulted in several transactions, such as Euromedic, Horizon, Amethyst.

Consumer Goods

Consumer goods is one of our key focus areas. Our team has extensive experience in the sector across the CE region. ACP has also continuously invested in the sector, with transactions such as Bella in Bulgaria or Profi in Poland.

Business Services

We are looking for leaders with proven business model and track record who we can partner with to grow into regional players.

Information Technology

A key sector traditionally skirted by traditional lenders in medium term financing, this is a core area of expertise of our team. Proven technologies and market leaders are our preferred partners, whom we can finance the next stage of their growth. Situated at the intersection of IT, Infrastracture and TMT, ACP’s investment ATM SA is an example of previous investments.

Financial Services

Our team has outstanding understanding of the different subsectors dynamically shaping up the financial services industry. At a wider ACP level, we have supported regional leaders such as personal finance company Mogo or the insurer Euroins.

Responsibility

Responsibility begins with us. By embracing certain key principles and incorporating them at various levels of our business processes, we advocate for sound corporate governance and sustainable business practices that result in responsible long-term value creation for our investors and portfolio companies.

ACP takes environmental, social and corporate governance issues very seriously in order to achieve a positive impact via its operations and sustainable investment returns. This approach is not new to us but has been implemented and further developed over the last decade. ACP strives to be a progressive, responsible investor and employer, enabling positive changes with stakeholders and leading by example. We are firm believers that responsible investing is beneficial for our investors, our investee companies, and the world we all live in. ACP is a proud signatory of the UN Principles of Responsible Investment.

What we do

  • Include ESG considerations into investment analysis and decision-making, ensuring full compliance with our high standards.
  • We are committed to act in good faith and build trust in all business relationships.
  • Ensure that best practice governance standards are followed in all corporate bodies.
  • Act as a responsible steward of investor’s capital and investee companies’ businesses.
  • We conduct ourselves with integrity in everything we do and uphold the highest standards of professionalism.
  • We seek to adopt and implement environmentally sound policies in our investee companies.
  • As part of the firm’s commitment to corporate sustainability, all employees receive ESG training to ensure they understand the importance of ESG, our commitment to the UNPRI charter and the environmental and social impact we can make together as an organisation. In 2021 we seek to become a neutral free company.
  • We believe it is socially and commercially imperative to ensure that a high level of diversity of available talent in society is represented in our business.
  • Supporting the wider communities in which we operate is very important to us.
  • Promote acceptance and implementation of ESG policies within the wider investment industry.

If you want to talk to us about anything please contact us.

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