STRATEGY
Geography
Investments concentrated in Italy and to a lesser extent in the DACH region (Germany, Switzerland, Austria)
Sectors
Multi-industry approach with preference for high value-added industrial goods’ sectors, non-cyclical businesses, as well as pharmaceuticals, chemicals and certain consumer segments such as luxury and food
Market segment
Profitable mid-market businesses with revenues in between € 20m and € 100m, export-oriented, niche leaders led by experienced, proven management teams that could benefit from European and/or global synergies via local and international support for organic and/or buy and build expansion strategies
Deal types
Buyouts via low leverage. Growth capital transactions, including replacement capital and qualified minorities
Investment size
Initial investment from € 10m to
€ 25m
Buy & Build strategies
Identification of target companies to consolidate the market
Access to debt financing and other sources of capital
Organic growth initiatives
Identification of greenfield sites, overseas partners to improve technology, know-how and product range
Introduction of new distributors / clients and hire of key employees
Negotiations of JV agreements and local partnerships
Operating improvements
Active participation in budgeting and operational performance measurement
Capex planning, cost reduction and enhanced treasury management functions
Upgrade of management information systems and reporting
Enhanced corporate governance
Strategic input at board level by MCP professionals and industry experts
Recruitment of senior management for leadership positions
Implementation of management incentive plans
MCP Team believes that a responsible approach towards the invested companies, their employees, suppliers and local communities, the environment and the society at large is an essential part of its success. Furthermore, that responsible ownership and business success go hand in hand and, as such, MCP Team has embedded consideration of ESG and sustainability factors throughout all stages of its involvement in an investment, from deal sourcing to exit.
MCP Team recognises the centrality of the six principles for Responsible Investments:
1. Incorporate ESG factors into the investment analysis and the decision-making processes.
2. Be active owners and incorporate ESG issues into the ownership policies and practices.
3. Seek appropriate disclosure on ESG issues by the entities in which MCP invests.
4. Promote acceptance and implementation of the principles within the investment industry.
5. Work together with the management of the invested companies to enhance effectiveness in implementing the principles.
6. Report on activities and progress towards implementing the principles within the organization and the portfolio.
MCP is compliant with the SFDR disclosures.
As part of MCP Team’s response to the challenges of monitoring and reporting on ESG more broadly, MCP became a signatory of the UN supported Principles for Responsible Investment in December 2015.
MCP monitors and discusses potential ESG topics with the managers of the portfolio companies in order to assure an ongoing ESG focus during the holding period.
MCP incorporates ESG issues into investment analysis and decision-making processes by performing an ESG due diligence at the time of the acquisition. A bad rating can cause the refusal of the investment opportunity.
MCP seeks appropriate disclosure on ESG issues including in the periodic reporting to the investors activities and progresses towards implementing the UN Principles.