Creating value starts with a clear investment strategy, supported by a disciplined investment process. Our investment process ensures we fully understand the strength of the strategic fundamentals of the companies we invest in, and chart the right path for future value creation.
We get this understanding from our ability to carefully listen to founders and management teams of businesses we are interested in, and from the uncompromising market research that we conduct in parallel. We can then move quickly, thanks to simple, local decision making. The success of the Astorg process is shown by the long-term value we have created over the last 26 years.
And it’s only when we understand what the goals and ambitions of management teams are that we act. We want to invest alongside business leaders driven by a long-term vision and aware of the high cost of capital. Our involvement as shareholders is to ensure that the right human resources are deployed, that capital employment is optimised and that a clear strategic roadmap is executed.
We concentrate on deals where we can develop a competitive advantage – this can come from our in-depth knowledge of a sector or industry or our ability to deliver a complex transaction. And by focusing on a limited number of companies per fund we can:
Share our experience to optimise key performance drivers
Identify, unlock and execute complementary acquisitions
Actively participate in key strategic decisions
Initiate and support performance improvement initiatives
Support the management team as needed
How we select investments
We are precise and deliberate when it comes to the investments we make. We are only interested in making investments in global B2B companies, with market leading positions, that sell highly differentiated products or services.
We start by identifying those companies that match our criteria, and work with their management teams ahead of any potential sale, to minimise the risk of a strategic misalignment after any transaction. In parallel, we work with industry experts so we truly understand the markets in which our prospective investee companies operate. Another factor we look for are managers willing to be entrepreneurial; their talent, past performance and commitment to have equity in the organisation personally are key criteria.
We ensure all our investment committee members receive first-hand information and are exposed to the management of our potential investees. Not only does it mean swift and reliable decisions, but that we only invest in those companies with robust fundamentals, sustainable margins and strong growth potential.
What opportunity looks like
Global companies
Valued between €100m and €400m (Astorg Mid-Cap funds) and €500m+ (FlagShip funds, Astorg VIII and successors), headquartered in Europe or the US.
Making controlling investments
We generally seek majority positions, with the flexibility to pursue minority deals.
In the B2B space
We have valuable industry expertise in healthcare, software, business-to-business professional services and technology-based industrial companies.
Sustainable margins
The businesses in our portfolio are all able to generate and sustain high operating margins thanks to the leading market positions they hold, sustained in turn by strong brands, mission-critical products, intellectual property, hard-to-replicate manufacturing processes, or a combination of the above.
Our philosophy is to offer meaningful and, compared to the rest of the industry, outsized co-investment opportunities to our partners as we believe it is an integral part of our value creation proposition.
Jean RabyPartner, Chief Client and Business Development Officer
Our investors
The limited partners in our funds, both past and present, include some of the most recognised investors in the alternative asset class.
They are primarily institutional investors: insurance companies, pension funds, sovereign wealth funds, banks and endowments. We also work with best-in-class funds of funds, and family offices founded by successful entrepreneurs.
Since 1998, we have generated a gross annualised return of 27% from our various investments, with a consistent performance across funds and cycles and within portfolios.
Astorg VII Limited Partners
Origin of investors
42%Europe (excl. France)
30%North America
20%France
8%Asia
42%Europe (excl. France)
Types of investors
30%Pension Fund
19%Insurance Company
18%Asset Manager
9%Endowments & Foundations
8%Sovereign Wealth Fund
8%Funds of Funds
7%Bank
5%Family Office
1%High Net Worth Individuals
42%Europe (excl. France)
Astorg Philanthropy Investments
In 2022, we launched Astorg Philanthropy Investments (“API”) - Astorg’s venture philanthropy arm. API has one goal: to support the transition to a healthier and more inclusive society.
We will seek to achieve this by providing catalytic support to organisations, both non-profits and social enterprises, that improve health and accessibility outcomes for people living with disabilities and chronic conditions.
Provide flexible capital through grants, equity and loans (ca. €30-300K per organisation)
Focus on products/solutions providing an intentional and measurable social impact
Access to Astorg’s deep network within the healthcare sector
Add additional value via strategy support and governance oversight
API is under the auspices of the King Baudouin Foundation, which bring a wide range of competencies and access to their network in the philanthropy space. API is supported by Astorg’s international team, and it is funded by Astorg through a combination of management fees and carried interests. We aim for the long-term preservation of capital across the API portfolio. All proceeds will remain within API and will be reinvested in other opportunities.
To share an opportunity with us or for more information please email api@astorg.com
ASTORG PHILANTHROPY INVESTMENTS APPROACH
Impact
Organisation’s products/ services improve health and accessibility outcomes for people living with disabilities and chronic conditions
Aim for long-term preservation of capital across the API’s portfolio, and all proceeds will remain within API
Cheque size
Between €30k and €300k depending on structure
Life at Astorg
We are a high performance organization, where people are encouraged to thrive and make a difference. At the same time, we nurture the values that define our unique culture: entrepreneurship, fairness, humility and substance.
