BNP Paribas Fortis Private Equity, together with Howest and Cronos, recently founded ForsVC, the first venture capital fund to focus exclusively on the Belgian gaming industry.

The gaming industry is booming all over the world. A lot of Belgian talent works on the development of computer and video games. In recent years, there has been a true explosion of creative video game start-ups in Belgium. But still, a lot of highly skilled creative people too often go abroad.

From brain drain to brain gain

As a venture capital fund for the Belgian video game industry, ForsVC wants to combat this brain drain. In the coming years, it will invest 10 to 15 million euros in gaming. Each of the three parties is bringing its specific experience and expertise. The Kortrijk college Howest as a reputable training institute. The Cronos group as a seasoned entrepreneur and investor in technology companies, including gaming studios. And the bank as a financial expert in Private Equity.

Stronger ecosystem

By making capital and expertise available to promising game companies, the existing ecosystem is enriched and made a lot more attractive. Belgian companies can professionalise themselves, develop high-quality games and pay competitive salaries.

University funds

Mireille Kielemoes, managing director fund investments Private Equity at BNP Paribas Fortis: “ForsVC is what we call a “university-linked” fund. This is a specific envelope within our Private Equity portfolio which, among other things, invests in university spin-offs or innovative companies whose IP (intellectual property) has a link to universities or knowledge institutions. Through these funds, we support innovation, creativity, job creation and entrepreneurship in Belgium in promising areas. For ForsVC, we’ll also be working via a participation in the game companies, but individual games are also eligible for project funding through revenue-based lending.”

Read the full press release here

Find out more about Private Equity here

On 13 October, our bank and the Belgian Venture Capital & Private Equity Association put the spotlight on these companies, as they achieved remarkable growth thanks to private equity.

A number of fast-growing Belgian companies were once again honoured at this year’s Private Equity Awards. This event highlights the role that venture capital investors play in the growth of both start-up, fast-growing and mature companies. Raf Moons, Head of Private Equity at BNP Paribas Fortis, represented our bank in the jury.

Three categories

The jury had the difficult task of choosing one winner from three nominated companies for each of the three categories – Venture, Growth and Buy-out.

• The ‘Venture company of the year 2021’ category focuses on young companies developing and marketing an innovative product or service with the support of a venture capital investor.
• The ‘Growth company of the year 2021’ category is for companies that expanded their business significantly through organic growth or an acquisition policy. They brought a financial partner on board without the latter aiming for control.
• The ‘Buy-out company of the year 2021’ category focuses on the transmission and growth of companies achieved by management and a private equity investor with a controlling stake.

Strong winners

• Venture company of the year: Deliverect

  This fast-growing SaaS company connects delivery platforms with food companies around the world. To help companies manage their delivery and pick-up operations more efficiently, Deliverect integrates food ordering platforms into the cash register system, eliminating the need to re-enter orders and the costly errors that come with them. Deliverect was founded in 2018 and is headquartered in Ghent. It employs more than 200 people.

  Deliverect emerged as the winner because the company has achieved enormous growth in the short term. The company is active in 38 countries and, therefore, certainly has the opportunity to become a global player within its sector. The delivery and takeout solution developed by Deliverect is crucial to the restaurant industry and became very relevant during the pandemic.

  Other nominees in this category were AgomAb Therapeutics and Imcyse.

• Growth company of the year: Odoo

  Odoo is a suite of open source business apps that cater to all business needs: CRM, e-commerce, accounting, inventory, point of sale, project management, etc. Odoo has more than 7 million users, located in more than 120 countries. The company has over 1,700 employees, was founded in 2004 and is headquartered in Grand-Rosière (Walloon Brabant).

  For the jury, the resilience shown by the company in recent years was one of the decisive factors in selecting Odoo as the winner. A deciding factor was also the quality of its products, which are not only very modern but also very user-friendly. Finally, the company, firmly anchored in Belgium, has a large international reach with its presence all over the world.

  UgenTec and Univercells were also nominated in this category.

• Buy-out company of the year: Abriso-Jiffy
  

  Abriso-Jiffy has evolved from a local 'bubble & foam' manufacturer to a leading European group specialising in sustainable protection and insulation materials for the packaging and construction sector. The group was founded in 1985, is based in Anzegem and employs approximately 1,500 people across 15 production sites in 11 European countries.

  This company was chosen by the jury because of its track record. First of all we are talking about a successful turnaround, followed by the entry of Bencis Capital, the acquisition of Jiffy and finally the very attractive exit. This journey was accomplished by a broad-based team. In addition, ESG criteria are deeply embedded in the company’s business model, making Abriso-Jiffy a true ambassador for the Private Equity Awards.

  In addition to Abriso-Jiffy, Corialis and Circet Benelux were also nominated.

Didier Beauvois, Head of Corporate Banking and Member of the Executive Board of BNP Paribas Fortis:
"As co-founder of the Private Equity Awards, we have organised this event now for the fourth time. On the one hand, to highlight successful Belgian growth companies and, on the other hand, to show how private equity can help companies. Not only innovative scale-ups, but also companies that wish to make the transition to a more sustainable business model through extra investment, have a natural need for capital. This type of investment often only pays off in the longer term. That is why, as a bank, we believe it is important to assist companies with this through our private equity offering. In this way, we can make a positive contribution to the Belgian economy and to society. We are actually freeing up additional resources for this and intend to double our private equity portfolio to EUR 1 billion by 2025."

Read the full file on Private Equity in Trends-Tendances:

• Full portrait of the winners in Trends/Tendances (Dutch/French)
• Interview with R. Moons, Head Private Equity BNPP Fortis and P. Demaerel, Secretary General at BVA (Dutch/French)
• Interview with B. Peeters and Q. Masure from Tiberghien (Dutch/French)

• Interview with M. Thumas and J. Van Assche from Eight Advisory (Dutch/French)
• Interview with M. Herlant and S. Spitaels, Associaties EY Strategy and Transactions (Dutch/French)

Discover more about private equity as a financing solution for growing companies 

Read the full Press Release

On 13 October, together with the Belgian Venture Capital & Private Equity Association (BVA), we will present awards to three companies supported by private equity or venture capital. Discover the candidates.

This fourth edition once again recognises successful Belgian companies that used private equity or venture capital to finance their growth. BNP Paribas Fortis is also supporting the Private Equity Awards for the fourth time as a member of the BVA. The bank will both host the event and serve on the jury.

Raf Moons, Head of Private Equity at BNP Paribas Fortis and juror: "We believe it is important to reward the growth companies in question and also highlight private equity's usefulness as a financing solution. Private equity is an excellent tool to boost the economy. For 40 years now, we have used it to offer companies opportunities at all stages of their life cycle. Besides this, BNP Paribas Fortis also supports companies that aim to use additional investments to increase their sustainability. This type of investment will only show financial returns in the longer term, which is why we wish to support them through our private equity offerings. In this way we can make a positive contribution to the Belgian economy and to society. We are actually freeing up additional resources for this and intend to double our private equity portfolio to EUR 1 billion in the next five years."

Pierre Demaerel, BVA Secretary General: "In the past few years the global private equity market has grown considerably. In Belgium, 1,400 deals amounting to over EUR 10 billion altogether were concluded in the past six years. And this trend is increasing. It involves EUR 1.5 to 2 billion annually. However, we have noticed there is a wider audience that is still insufficiently familiar with the possibilities offered by this form of financing. That is why for the fourth time, the BVA is proud to be highlighting, together with partner BNP Paribas Fortis, several Belgian companies that have exhibited remarkable growth thanks to the support of private equity or venture capital investors."

Who will follow in the footsteps of iStar Medical, Cegeka and Destiny?

The jury has nominated nine companies. There are three nominees each for the categories 'Venture Company of the Year', 'Growth Company of the Year' and 'Buy-out Company of the Year'. The jury will announce which companies they feel have achieved the steepest growth trajectory in each category on 13 October. We are pleased to introduce the nominees:

• The ‘Venture Company of the Year 2021’ category focuses on young companies developing and marketing an innovative product or service with the support of a venture capital investor.
  • AgomAb Financials is a Ghent-based biotech player that develops drugs to repair damaged human tissue.
  • Deliverect, also a company based in Ghent, creates software that allows restaurants to manage their online orders and integrate these into their existing cash register system.
  • Imcyse is a Liege-based biopharmaceutical company that pioneers the development of a new class of immune technologies for the treatment of serious auto-immune diseases.
• The category ‘Growth Company of the Year 2021’ is for companies that expanded their business significantly through organic growth or an acquisition policy. They brought financial partners on board without the latter desiring control.
  • Odoo from Ramillies in Wallonia develops open-source management software for SMEs. With over 10,000 fully integrated apps, the company offers solutions for the full automation of business processes.
  • UgenTec from Hasselt develops pioneering lab software for the automation of DNA analyses, making it possible to detect respiratory infections, STIs and various types of cancer much faster.
  • Charleroi-based Univercells develops technologies for the production of low-cost and large-scale vaccines. This company has won the confidence of many (inter)national investors, including the Bill & Melinda Gates Foundation.

• The category ‘Buy-out Company of the Year 2021’ focuses on the transmission and growth of companies achieved by management and a private equity investor with a controlling stake.
  • Anzegem-based Abrios-Jiffy is a leading manufacturer specialising in the extrusion of sustainable, innovative, protective and insulating materials for the packaging and construction industry.
  • Corialis in Lokeren designs and manufactures high-quality, technologically advanced aluminium systems for in-wall (windows, doors, sliding elements, roofing systems, curtain walling), indoor (partition walls, walls, fire protection doors) and outdoor (balustrades, greenhouses) applications.
  • Esas from Wilrijk, which will be renamed Circet Benelux in future, is a service provider for the installation, maintenance and management of smart devices in sectors such as telecom and energy. The company also handles the construction and maintenance of coax, optical fibre and mobile networks for large telecom companies.

Want to learn more about the Private Equity Awards? Go to the BVA website

Discover private equity as a financing solution

Belgium’s three regions provide a range of grants for companies and self-employed people making investments. Our experts can help you make sense of the situation and submit your application.

The terms and amounts of investment grants vary greatly from one region to another. The applicable rules depend on the location of the operational entity making the investments. The company’s registered office is not relevant and can be located in any country. You should also bear in mind that applying for a grant is still a fairly cumbersome administrative process. That’s why our experts take care of all the steps, from submitting the grant application to collecting the grant money.

Flanders: a range of grants

Various types of grants are available in Flanders, the most important of which are support for strategic transformations, the ecology bonus, strategic ecological support, the SME e-wallet and the SME growth subsidy.

Each type of support targets different types of investment and different companies. Subsidy levels also vary widely, from 8% for a strategic investment by a large company to 50% for consultancy fees paid by an SME.

Our experts can help you identify subsidy opportunities and then arrange for you to meet a specialist from VLAIO, the Flemish Agency for Innovation and Entrepreneurship, who will then help you with the rest of your application.

Wallonia: traditional and ecological aid

In Wallonia, investment grants are reserved for companies operating in a limited number of eligible sectors. Excluded activities include retail, transport and the liberal professions.

The terms and conditions also differ according to the size of the company. Small businesses must invest a minimum of €25,000. Large companies need to reach higher thresholds and invest in a development zone.

Examples of eligible business investments include buying/building a property, buying land and buying new business equipment.

The basic grant varies from 4% to 6%, but can be higher if the applicant creates jobs, takes an innovative approach or diversifies abroad, for example. A larger grant, up to 20%, may be obtained for projects that promote the sustainable use of energy and environmental protection.

Please note that it is essential to submit the request before any firm investment commitment is made: investments for which you have already accepted a quote can no longer be subsidised.

Our experts can guide your company through the entire process.

Brussels: the most generous

The Brussels subsidy for investments in goods, property or works is open to most sectors. In total, around 80% of the capital's economic activities are eligible for grants. The two main exceptions are education and real estate.

To qualify for a grant, the investment project must be worth at least €10,000 for a start-up business and at least €15,000 in other cases, depending on the size of the business. In addition, it must aim to develop or improve an existing activity: simple replacement expenditure does not qualify.

The aid can amount to up to 30% of the investment, although the average is 12.5%. The level of subsidy depends on a number of criteria, such as whether the company is a start-up and whether the investment will increase the number of people employed by more than 30%.

Over the course of 2024, reforms to the aid system will increase incentives for sustainable and circular economy projects.

Please note that it is essential to submit the request before any firm investment commitment is made: investments for which you have already accepted a quote can no longer be subsidised.

Our experts can guide your company through the entire process.

Experts from 16 cities around the world shared their insights at the Sustainable Future Forum. In Brussels, we heard from Virginie Frémat, Senior Partner at law firm CMS, who specialises in ESG and corporate responsibility.

Environmental, social and governance (ESG) factors have moved from being a niche concern to a strategic board-level priority across all sectors and jurisdictions in a short space of time.

ESG implementation and reporting are no longer things companies do to be socially responsible: they have a legal obligation to embrace them.

From financial institutions to energy companies to tech start-ups, from small and medium-sized enterprises (SMEs) to publicly listed companies, all businesses need to focus urgently on ESG.

While the impact of ESG regulation is indisputable, the business and investment environment is opening up new opportunities and will continue to do so in future. Existing and future ESG regulation is about making people and the planet an integral part of a company's long-term strategy. This development creates opportunities for companies to do better for people and the planet, while creating greater value for investors. 

A changing playing field

Not only are governments becoming more demanding on ESG issues, shareholders and civil society movements are also making their voices heard. Consider the Urgenda Foundation, which took the Dutch state to court: it demanded that the government do more to reduce greenhouse gas emissions, and was successful. Whether the Belgian climate case can force the government to take action on climate change is currently being decided in the Court of Appeal.

The push for companies to adopt more concrete, measurable and enforceable ESG initiatives is coming from three directions: 

• Stakeholder activism
• European directives
• National legislation

Sustainable finance action plan

In March 2018, the European Commission launched its Action Plan on Sustainable Finance, which aims to:

1. Direct capital flows towards sustainable investments for inclusive growth
2. Manage financial risks related to climate change and social issues
3. Promote transparency and long-term thinking in finance

Key features include a single EU classification system (taxonomy), investor responsibilities, low-carbon benchmarks and improved sustainability guidance, all aimed at promoting a more sustainable financial future.

Non-financial reporting directive

To support the transition to a more sustainable economy, the European Parliament adopted the Corporate Sustainability Reporting Directive (CSRD) in late 2022. This is an extension of the Non-Financial Reporting Directive (NFRD), both in terms of the number of companies that have to comply with the standards and the number of topics they need to report on.

The NFRD came into force on 5 January 2023 and will eventually apply to around 50,000 companies. In the same way that companies are now required to carry out financial reporting, they will also have to report on sustainability. The largest companies will be the first to report, with smaller companies following later. On 3 September 2017, the Belgian legal system incorporated these requirements, which are now part of the Belgian Code on Companies and Associations.

Taxonomy regulation

The EU Taxonomy Regulation introduces a classification system for environmentally sustainable economic activities. Article 8 of this regulation imposes disclosure requirements on companies subject to the NFRD. These include the obligation to disclose the extent of a company’s engagement in environmentally sustainable activities and certain key performance indicators.

Corporate Sustainability Reporting Directive

Companies subject to the CSRD must include non-financial information in their annual management reports, covering environmental, social, human rights, anti-corruption, bribery and diversity issues. The CSRD also requires a brief description of the company's business model, policies, performance, key risks and non-financial performance indicators.

Sustainability reporting will follow mandatory EU standards: the first set of standards was published on 30 June 2023 and a second set with additional and sector-specific information will be published by 30 June 2024. Reporting must take into account the principle of double materiality, covering both how a company’s business is impacted by sustainability issues and how its business impacts society and the environment.

The CSRD emphasises the value chain, strategy, stakeholder interests, implementation of sustainability policies and progress towards sustainability goals.

It requires disclosure of due diligence processes, adverse impacts throughout the value chain, actions taken to mitigate such impacts, material sustainability risks and relevant indicators.

The CSRD has introduced comprehensive sustainability reporting requirements for large public-interest companies, so that they provide detailed and transparent information on their sustainability practices and impacts.

Corporate Sustainability Due Diligence Directive

This directive applies to large EU and non-EU companies. It requires them to carry out due diligence and to act on any findings. There are sanctions for non-compliance. The new civil liability regime allows direct claims by individuals who are harmed by a company's non-compliance.

For companies incorporated under the law of an EU member state, the CSDDD applies to companies with an average of more than 500 employees and a global turnover of more than €150 million in the last financial year. Alternatively, it applies if a company has an average of more than 250 employees and a global turnover of more than €40 million in the last financial year, with at least 50% of that turnover generated in sectors deemed to be high-risk. High-risk sectors include those involved in the manufacture of textiles, leather, agriculture, food, minerals and related trade.

In addition, the CSDDD introduces measures applicable to SMEs involved in the value chains of companies covered by the Directive, recognising the indirect impact on them.

I run an SME: what should I do?

Unlisted SMEs fall outside the scope of the CSDDD, so they are not directly subject to its provisions. However, SMEs with securities listed on an EU regulated market (excluding micro-enterprises) fall within the scope of the CSDDD, although they can opt out until 2012

. In addition, a specific set of EU sustainability reporting standards tailored to SMEs is being developed, which non-listed SMEs can adopt on a voluntary basis.

It is important to note that even if SMEs are not directly covered by the CSDDD, they may still be affected by it through their involvement in the value chains of larger companies. Both EU member states and companies within the scope of the CSDDD have an obligation to support SMEs in these value chains.

I’m a director: what does this mean for me?

The CSDDD has wider implications for directors of companies that fall within its scope. Directors have a fiduciary duty to promote the success of their companies, but they also face risks such as criminal and civil liability and sanctions, particularly if they are directors of listed companies. In addition, the focus on ESG and sustainability issues can lead to reputational damage. The CSDDD increases the regulatory burden on companies, both in terms of time and cost. There may also be a negative impact on share prices and the cost of directors and officers insurance premiums. Articles 25 and 26 of the CSDDD, which relate to the duties of directors of EU companies, remain subject to ongoing discussion and refinement.