EMH Partners closes first growth fund at €350m
EMH Partners, Munich-based private equity firm, finished fundraising for its first growth fund. The EMH digital growth fund closed at a volume of €350m, which makes it one of the largest funds in the European growth segment. Including a co-investment programme, EMH Partners commands a total of €700m in investment capital, which is dedicated to the digital transformation of small and medium-sized enterprises (SMEs) in Europe.
“Digitalisation is putting many business models to the test, especially among SMEs. As next generation investors, we want to help these businesses take full advantage of their digital potential,” says Maximilian Kuss, managing partner of EMH Partners. “Through the EMH digital growth fund, we are not only doing our part to counter the lack of growth capital in Europe, but we are also joining forces with our investors to contribute to the digitalisation of the European SME sector.”
EMH Partners focuses on the attractive market segment above venture funds and below traditional buyout funds. Target investments include SMEs from various industries whose business models have already proven successful in the market. The regional focus is on Europe, particularly the German-speaking regions. The fund only invests equity and pursues a long-term build-and-scale strategy, holding investments for five years on average. The size of the stake in a company is flexible in principle, though the fund primarily targets minority shareholdings. The amount per investment ranges from €10m to €100m.
“We do not invest in start-ups. Instead, we focus on companies already turning a profit or on the verge of breaking even which harbour great potential for growth and digitalisation,” says Sebastian Kuss, managing partner of EMH Partners. “As entrepreneurs, we know from first-hand experience what the needs of our portfolio companies are and how critical speed and flexibility can be. This experience has shaped our investment philosophy. In the spirit of partnership, we offer our portfolio companies our digital expertise and network. By doing so, we create added value, which goes far beyond just providing capital for the companies we invest in.”
The EMH digital growth fund has already invested in two companies: kiveda Group, which is the leading multichannel provider of fitted kitchens in Germany, and Occhio, the German market leader of high-quality designer luminaires and lighting systems. EMH Partners plans to add two to three companies to the portfolio per year.