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3 questions to smart minds
Photo: Marco Brockhaus

Brockhaus establishes technology-focused industrial holding company

For this 3 questions to Marco Brockhaus

Brock­haus Capi­tal Manage­ment (BCM) AG
Photo: Marco Brockhaus
26. April 2018

The Fran­k­­furt-based private equity house Brock­haus is opening a new chap­ter: After three successful fund gene­ra­ti­ons, foun­der Marco Brock­haus is laun­ching an indus­trial holding company. Brock­haus Capi­tal Manage­ment (BCM) AG is plan­ning an IPO after comple­ting initial acqui­si­ti­ons of tech­no­logy and inno­va­tion leaders. 


For this 3 ques­ti­ons to Marco Brock­haus, Foun­der and CEO of Brock­haus Capi­tal Manage­ment (BCM) AG

1. What led to your decis­ion to found Brock­haus Capi­tal Manage­ment (BCM) AG in 2017? What do you think are the advan­ta­ges of moving away from the fund concept?

BCM AG, with its long-term orien­ta­tion, offers the oppor­tu­nity to fully exploit the entire value poten­tial of invest­ments. In the case of private equity funds with a limi­ted term, on the other hand, it is some­ti­mes neces­sary to sell a port­fo­lio company before the full poten­tial can be reali­zed. Our stra­tegy is aimed at incre­asing the value of our invest­ments over the long term. This is even more possi­ble with our new company. After the targe­ted listing, inves­tors will gain addi­tio­nal fungi­bi­lity in an inher­ently illi­quid asset class.

Our new struc­ture is advan­ta­ge­ous for both inves­tors and port­fo­lio compa­nies. We have found a good role model for our stra­tegy in the USA in “Roper Tech­no­lo­gies”. The successful estab­lish­ment of this tech­no­logy group descri­bes very well what we are also curr­ently working on.

2. How many invest­ments have you made with your three PE funds to date and what has been the success rate?

Over three private equity fund gene­ra­ti­ons, we have inves­ted in 23 compa­nies. Since we focus on buyouts and growth finan­cing, our average GROSS money multi­ple in this regard is 2.1x and the IRR is 43%.

3. Their special focus has so far been on tech­no­logy compa­nies. Will you main­tain this focus?

We have done very well with our long-term invest­ment stra­tegy and have been able to deve­lop a large number of compa­nies very successfully. That is why we are conti­nuing to invest — now with a long-term approach — exactly as we have done in the past. Inno­va­tion and tech­no­logy leaders offer very speci­fic and signi­fi­cant advan­ta­ges: strong diffe­ren­tia­tion from exis­ting and new compe­ti­tors as well as market leader­ship in the niche, above-average growth and high profi­ta­bi­lity combi­ned with low capi­tal inten­sity. We have been specia­li­zing in this type of busi­ness for 18 years now.

See also: www.bcm-ag.com

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