Perfectis has over €200 million under management, with commitments from numerous international funds of funds, insurance companies and banks. Perfectis represents an attractive private equity investment opportunity in France for the following reasons.
Solid investment performance
From its first close in October 2000 to April 2005, Perfectis I has completed 14 investments (all within the defined investment strategy), 10 add-on acquisitions and 2 exits. Prior to establishing Perfectis, Mr Fossorier and Mr Lavirotte had invested some €90 million in French companies between 1990 and 1999, achieving attractive returns.
On a combined basis since 1990, the Investment Team has been responsible for 57 investments and 18 realisations in France.
Well established firm in attractive lower mid-market
Since 1990 the Founders of Perfectis have been actively investing in the French lower mid-market, first at 3i and, since 2000, at Perfectis. Perfectis is now firmly positioned as one of the leading firms in this market (Enterprise Value €10-35 million).
This segment, characterised by small, mainly family owned businesses, requires a sensitive and relationship driven approach. The ability to work positively with management teams, react quickly to deal opportunities and to structure deals appropriately is far more important than an international brand name or the resources of a larger fund.
Perfectis’s segment has, in recent years, generated a consistent flow of investment opportunities with an average of approximately 70 completed per year. Nine firms, including Perfectis, are identifiable as active core investors in this market.
Perfectis has always maintained an exclusive focus on this segment and has emerged as one of the recognised leaders, as substantiated by perception studies and contacts with industry players and operators.
Strong origination and demonstrated deal-winning capabilities
The combination of the Partners’ established network and the long standing experience and support of the cornerstone investor EH-SFAC provides Perfectis with an exceptionally strong, high quality sourcing capability. Equally, Perfectis have demonstrated an ability to win deals where intermediaries are involved, thereby minimising time and effort wasted in failed deals.
The value of EH-SFAC goes well beyond the simple sourcing of investments. Euler Hermes SFAC is a leading French credit insurance company listed on the Paris stock exchange and member of the Allianz group. It employs over 100 senior executives based in 26 regional offices throughout France. Typically they visit some 8,000 companies every year, building up proprietary economic information in the process.
Continuity of investment strategy
Gabriel Fossorier and Jean-Marie Lavirotte have consistently focused on the French lower mid-market throughout their careers in private equity, including their time at 3i and, more recently, Perfectis. Together with the other members of the Investment Team, they have gained experience, reputation and trust, whilst developing a solid network.
Experienced, committed, cohesive Investment Team
Each of the two founding Partners has over 16 years of experience in the private equity industry and a recognised track record and reputation.
Since establishing Perfectis, they have built a solid team, placing the emphasis on in-house training and gradual transfer of responsibilities. This has resulted in a cohesive and highly committed team.
Carried interest and other incentives are spread throughout the team providing a strong alignment of interest across senior, middle and junior team members.