Astorg has an investment track record of 19 years as an independent fund management partnership. Since 1998, Astorg has concluded 41 transactions, generating an annualised portfolio return of 27.5% on the 28 realised investments as at end of December 2016. The strong performance has been delivered steadily, across several economic cycles and a once-in-a-century financial crisis. Furthermore, it has been achieved while maintaining a loss rate of less than 1.3% on all capital invested since 1998. These numbers speak to Astorg's responsible and prudent approach, while showing our ability to add shareholder value by providing adequate capital structures and sound strategic guidance.
Astorg endeavours to create equity value through a combination of growth initiatives at sales and operating margins levels; disciplined balance sheet management with the reasonable use of financial leverage; and strategic value enhancement, often leading to the re-rating of the valuation multiples.
Astorg makes control investments in B2B global niche leading companies, selling differentiated products or services, and occasionally invests in B2C companies, where the revenue model is highly predictable. We seek to acquire companies with demonstrated pricing power.
Our investment process is rigorous. We systematically work with industry experts to achieve a truly insightful, in-house understanding of the markets where our prospective investee companies operate. We proactively identify the European companies matching our criteria and work with their management teams ahead of a potential sale, minimising the risk of a strategic misalignment, should a transaction occur. Being a centralised organisation ensures that all Astorg investment committee members receive first-hand information and are potentially exposed to management. It also ensures a swift and reliable decision-making process.
We concentrate our resources on sourcing deals where Astorg can enjoy a competitive advantage: insider knowledge, relationship with the vendor, or a distinct ability to deliver in a complex transactional context.
Fairness is the central value driving the group. We pride ourselves in providing equitable valuations to sellers, well-balanced capital structures, and an appropriate, respectful treatment of all our investee companies’ stakeholders. We strive to establish a relationship of trust, transparency and genuine partnership with management teams, who become shareholders in the company. We are straightforward, reliable and fair people.