Inflection
Inflexion is an independent Private Equity company operating exclusively in the European mid-market segment. Since its creation in 1999 in the UK, Inflexion has supported over 100 European mid-market companies.
Today, it is one of Europe's largest mid-market Private Equity teams, with 140 professionals operating through its four European offices and international relays.
The company manages over £8bn in Private Equity alone, spread across three fund families with complementary strategies: the Buyout fund and the Partnership Capital fund, which operate from a joint team; and the Enterprise fund, which has a dedicated team.
A Growth Buyout strategy and an organisation of exceptional quality
Inflexion makes disciplined investments in companies that meet specific criteria.
These criteria include: annual sales growth of at least 10%, annual EBITDA growth of at least 15%, EBITDA margin of at least 15%, a high level of free cashflow, an ambitious management team, attractive market positioning and potential for international expansion.
To invest in mid-cap companies, Inflexion relies on a high-quality large-cap organisation giving it a clear competitive edge in the European mid-cap market.
Today, Inflexion has several multi-disciplinary and complementary teams, including an investment team, an organisation and marketing team, a value creation team, a portfolio team and a value protection team.
A true origination machine
Inflexion's origination team is one of the most outstanding on the market.
The team is specialised by sector and, with the support of the company's dedicated marketing team, it exclusively generates a large number of investment opportunities under the Inflexion brand in Europe.
This team can use Inflexion's precise strategic criteria to sort out investment opportunities.
Depending on whether the founder or manager of a target company wishes to sell a majority or minority stake, the investment opportunity will be allocated either to the Inflexion Buyout fund (for majority transactions) or to the Inflexion Partnership Capital fund (for minority transactions).
As a result, the Partnership Capital team benefits from extensive resources.
A UK Mid-Market leader buyout that has successfully expanded to the rest of Europe
By adhering to its precise investment criteria in a highly disciplined way, through the origination of proprietary transactions and the support of a large team with strong sectoral and operational expertise, Inflexion has built up an exceptional and very deep track record in the UK.
Inflexion has also proved its ability to expand its activities thoughtfully and successfully across Europe, targeting investments in its areas of expertise outside the UK (the initial target geography).
Successful expansion into the Benelux and the Nordic countries is a concrete example of this.
Investing in Inflexion is an opportunity to follow the pan-European expansion of a proven and promising player.
A particularly attractive risk/return profile
The leaders or founders of Inflexion target companies generally opt to retain a minority shareholding because their company is still growing. Inflexion Partnership Capital therefore stands out in the strong organic revenue growth of the companies it owns.
Right from the analysis phase, value-creation strategies focus on improving operating performance, with the team concentrating on organic growth rather than leverage to achieve profitability at exit.
This also has the significant advantage of reducing the risks associated with overleveraging, which is particularly relevant in the current macroeconomic climate.
The major competitive advantage of Inflexion's partnership capital fund lies in its unique positioning in minority investments, while most players of its size compete on majority positions. This niche position enables Inflexion to be highly selective and to have considerable negotiating power, offering significant downside protection by securing strong minority shareholder rights.
Inflexion Partnership Capital Fund III
