7. Platform Strategy
Gimv invests in the potential market leaders of tomorrow. Its investee companies are all ambitious growers who want to strengthen their market positions, improve their performance, strengthen their balance sheets, and conquer international markets.
With Gimv, an independent, publicly traded investment company, they take on board an experienced partner with expertise in four investment platforms: Connected Consumer, Health & Care, Smart Industries and Sustainable Cities. Within that focus, each shareholding offers in its own way an answer to the challenges and needs of society, whether for consumer proximity, health care, innovative production and services, or the pursuit of sustainable mobility and living environments.
Our focus is on investments from EUR 5 to 50 million, with a preference for investment tickets of EUR 10 to 30 million, potentially distributed over the entire investment life cycle. Our strength today lies mainly in providing growth capital to later phase and more mature companies, which therefore make up the bulk of our portfolio. We aim, with a combination of specialization, operational involvement and patient capital, to enable companies to pass through the various development phases of their growth process.
In terms of investment instruments, we see ourselves as an investor who can exhibit the appropriate flexibility through equity or equity-linked instruments. We strive for majority or substantial minority shareholdings, with representation in the board of directors and sufficient impact at the various levels, without interfering in day-to-day management. A syndicate with other investors is possible and can add value, where the risk can be spread more widely. In terms of investment period, we are flexible: while our average investment horizon is 4 to 8 years, longer terms are also possible in order to achieve optimal value creation.
Today - five years after launching the platform strategy in 2012 - Gimv manages a fairly young portfolio of 51 companies. In the past year we saw a lot of movement here: in addition to expanding existing investments and to 12 divestments, Gimv signed up 11 new partnerships. To achieve the future growth of these companies, we identify, case by case, the most appropriate strategic levers, with which our investment professionals and the companies' managements start to work. These include sustainable organic growth, buy & build, international expansion and product innovation. We are constantly looking out for new opportunities in companies ready for a new stage in their growth plans or shareholder structure.
The diagrams below show the distribution of the portfolio by platform and geography as of 31 March 2017.