Cinven's portfolio companies typically have established operations, scale, price and product leadership, and strong brand identities. As a result they are able to attract high calibre management teams and offer a broader range of exit opportunities. Cinven has a disciplined investment focus and will not, for example, invest in early stage, technology related businesses, or heavily loss-making companies. These characteristics also mean that Cinven portfolio companies have greater downside protection and are less vulnerable to market cycles. Since 1988, Cinven has evolved a consistent investment strategy, targeting opportunities that can demonstrate the following criteria:
A focus on companies with European headquarters or significant European operations. Cinven can also invest selectively in North America.
Control positions, a path to control, or significant influence over the strategy and management.
Market leading, cash generative companies; attractive market dynamics; a high value-add business model.
Clearly identified strategy to accelerate growth.
Companies within one or more of six sectors:
Enterprise value typically greater than €400 million, requiring a Cinven equity investment typically in excess of €200 million.
Minimum target return threshold is at least a 2.0x gross money multiple and a 20% gross IRR for a base case with significant upside opportunities.