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Overview of the Inflexion Capital Fund III

Published on
18/1/2024
3:45mn
The subtitles for this video were generated automatically using artificial intelligence.

Summary

Inflexion as one of the leading buyout firms in the United Kingdom, with a successful expansion into Northern Europe and the Benelux region. Its strategy is based on strong sector-specific expertise, particularly in services, and on a rigorous selection of growing, profitable, capital-light companies with potential for international expansion. The firm also stands out for its highly structured organization, with dedicated sector-specific teams and a recognized ability to generate proprietary investment opportunities. Its investment model is particularly flexible. When a founder wishes to sell a majority stake, the transaction is executed through its buyout fund. Conversely, if the founder prefers to retain control, Inflexion as a minority shareholder through its Partnership Capital fund. This positioning is strategic, as there is little competition in this segment, with most private equity players favoring takeovers. This scarcity allows Inflexion negotiate strong shareholder rights, close to control, including downside protection and favorable governance mechanisms.Even as a minority investor, Inflexion typically Inflexion between 30% and 50% of the equity and remains the sole financial investor alongside management. This position, combined with enhanced rights and strong operational involvement, enables it to play an active role in value creation. Specialized teams support companies on key performance levers, at the request of the executives themselves.This model translates into particularly robust performance.Inflexion mature fundsInflexion an average net multiple of 2.3x and an IRR 25%, with no historical fund having fallen below 2x. These results were achieved with limited use of leverage, which strengthens their resilience in a high-interest-rate environment. The historically very low loss rate also confirms the fund’s asymmetric profile: high returns combined with a controlled level of risk.

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