Our Investment Strategy
A2C Capital GmbH pursues investment opportunities and closely follows technologies that increase general water use efficiency, e.g. “water reuse” technologies. Moreover, the reduction of sludge, improved farming and agri- and aquacultural technologies, efficiency of the energy demand in cleaning or distributing water, or decentralized treatment approaches are of interest for us, as well as IT-, nano-, electronic-, GIS-technologies which are also included in the current investment strategy, provided they have a strong relation to the “core” water technologies.
A2C Capital GmbH might act as a “growth investor” – covering small scale transactions as well as investments above 20 Mio. EUR – and as sponsor supporting special situations like succession, spin-off, MBO/ MBI. A2C Capital thus invests in a limited range of transaction types, start-up financing (provided the target company is profitable and has more than 1 million EUR in revenues), buy-outs, build-ups, and in situations where expansion and growth capital is required (e.g. for project financing). The investment risk is controlled by staging capital commitments to a Portfolio Company according to a milestone plan. The Team usually requires the Portfolio Company to have at the time of the initial investment sufficient critical mass to survive as a stand-alone investment, but typically seeks to identify one or more add-on acquisitions. We hardly make investments in a restructuring situation.