Certior Capital invests opportunistically across Europe to achieve the best returns for its clients. To outperform we have a deliberately different investment philosophy.
We are not an allocator. We like keeping things small and focus on the potential for additional returns rather than simple asset gathering.
“We focus on undercapitalised and overlooked sectors of the market which can offer real value.”
Typically, this can mean partnering with emerging managers on smaller deals, concept funds or with deal-by-deal teams where capital is scare and return potential is high.
We are often the first investor providing seed capital to a new fund and are in a strong position to demand preferential terms as a result.
We aim to be the preferred co-investor to our investment partners and will typically expect a 1.1 allocation of co-investment to fund capital.
We are incentivised by carry not management fees and expect our investment partners to be similarly aligned.
Responsible investing is important to us and we work hard to promote the highest environmental, social and governance standards across our investment activities.
|Examples of typical transactions|
|SME direct lending fund investment |
|• Emerging credit manager focusing on sponsorless deals in the Benelux
• Highly experienced finance professionals with decades of relevant experience
• Special terms expected to increase return by 300bps+
• Strong focus on capital preservation and downside protection
|Distressed fund investment|
Spain & Portugal
|• EUR 42m SPV focusing on Iberian real estate with 15–20% base case return targets set up by a manager well known to Certior since 2015
• Opportunities driven by covid-19 impacts (e.g. repositioning of retail spaces) as well as other properties needing repositioning/refurbishment
• Low fee on invested capital with well above average GP commitment
• 50:50 no fee/no carry co-investment rights agreed
|Distressed fund investment|
|• EUR 70m distressed fund managed by a spinout of the European team of a respected US distressed investor
• Small fund size enables flexibility between opportunities and working under the radar of the megafunds
• Certior is the preferred partner for no fee/no carry coinvestments to further boost the “relationship return”
|Niche PE fund investment|
|• New fund from an emerging European manager focusing on value investments in sectors of long-term sustainable growth such as healthcare
• Five core team members have an average of 10–20 years of common investment experience with a track record implying a 3.0x gross return from 20+ investments
• The target size of investee companies is EUR 30–300m EV. The fund is expected to have a focused portfolio of 6–8 companies
• 3 co-investments closed with the manager within the first 12 months
|• Certior was introduced to an emerging manager looking to establish an insolvency claim focused fund
• This co-investment involved the acquisition of a tail-end, cash collateralised claim in a ten year old German insolvency
• The team know the asset very well having managed it for the last 5 years at a global distressed fund
• Full investment recovery with an already announced distribution and all-in return target of 1.6–2.0x and 60–75% IRR
|• The company is a mid-sized IT system integrator & managed service provider operating internationally
• It is undergoing a business turnaround under new ownership.
It was EBITDA negative at the time of investment but has
returned to profitability six months later
• The transaction is structured as a hold-co senior loan with warrants, junior to the operating company loan
• The turnaround is proceeding ahead of plan with the base case all in net return of 30%+ IRR
|SME direct lending co-investment|
|• Senior secured loan to a UK designer and manufacturer of smart meter in-home-displays and customer access devices with a highly predictable revenue profile
• A modestly levered five year bullet loan with a three year make-whole
• 20% of common equity, up to 3% more with a call option and an expected net IRR of 22% / 2.1x
|Venture lending co-investment|
|• The company acquires and scales profitable e-commerce merchants across the consumer discretionary segment in Germany
• The investment is a four year senior loan with a two year make-whole
• The loan was repaid in less than six months with full make-whole, minimum IRR >50%, with equity upside still outstanding