Investment strategy

THCP has brought into the market a new model of financing, thanks to a private equity team operating in the alternative financing space

Investing through preferred capital instruments, our solutions are able to create financial structures that allow entrepreneurs to have equity stakes greater than what they would have in the context of similar transactions with traditional private equity sponsors. Unlike a bank, preferred capital does not require significant annual cash repayments, freeing up cash-flow for investment in the business

THCP applies private equity tools to the unitranche and mezzanine world. Our innovative way of working includes:

  • extensive and in-depth due diligence and not mere desktop analyses,
  • hands-on monitoring and significant operational involvement (e.g. board seats, steering committees, support in M&A or corporate finance processes, etc.)
  • active rights to lead potential exit strategies thanks to our equity position.

Unlike traditional private debt providers whose strategy focuses mainly on providing acquisition financing to PE firms in the context of LBOs, THCP’s core strategy is to work directly with successful entrepreneurs ("sponsor-less deals") to finance their need of capital for transformational events, such as M&A, expansion projects, roll-outs, minority buy-outs, etc.

Our Strategic Advisory Board includes very senior executives from the European business community which have worked closely with the THCP team in the last 10 years and they represent a sounding board to the investment team.

In addition to long lasting and trusted relationships with successful businessmen and leading advisors in our local markets, THCP team can leverage on unique sourcing capabilities thanks to the extensive professional network brought in by its investor base made of some of the most respected entrepreneurs in Europe.

  • Investment ticket - It ranges between €20 million and €50 million
  • Geography - Pan-European
  • Sectors - THCP is a generalist fund with main focus in:
    • Businesses with distinctive features such as:
      • Presence in established, stable markets, where historic performance is a reliable guide to future prospects
      • Clearly identifiable competitive position in the market
      • Flexible cost structure which can withstand fluctuations in sales
      • Healthy balance sheet and not excessive leverage
    • Industries where THCP team has worked most frequently include:
      • Retail/consumer goods/leisure in fast growing economies
      • Niche manufacturing with global geographical exposure and leading market shares
      • Services/people businesses

Our ideal target is an entrepreneur/management team looking for money to fund:

  • Growth:
    • Development capital for capex and working capital requirements
    • Funding for M&A deals
  • Shareholders events: continuing shareholders buying out other shareholders who wish to exit
  • Refinancing: creating financial flexibility by addressing maturing existing facilities, hostile lenders, covenants resets etc.