The Private Equity Awards will be presented on 12 October 2022. We are organising this event for the fifth time, together with the Belgian Venture Capital & Private Equity Association (BVA). Check out this year’s nine nominees.

The Private Equity Awards reward Belgian companies that have received support from a private equity or venture capital investor for their growth and development. This is the fifth time that the Belgian Venture Capital & Private Equity Association (BVA) and BNP Paribas Fortis are organising this prestigious award ceremony.

The nine finalists were nominated based on criteria such as sustainable growth, authentic leadership, and active ownership. They are divided into three award categories: Venture capital, Growth, and Buy-out company of the year.

Venture company of the year:

• Aerospacelab
  Aerospacelab is an innovative scale-up specialising in satellite platforms and information obtained from geospatial technology. The company designs, manufactures and operates a constellation of satellites for remote sensing, collecting useful information.
• Precirix
  Precirix is a biopharmaceutical company and a spin-off of the VUB. It is dedicated to extending and improving the lives of cancer patients by designing and developing precision radiopharmaceuticals.
• Qover
  Qover enables any digital company to embed insurance in its value proposition. The company has built a tech platform that can launch any insurance product in any market, language and currency in days.

Growth company of the year:

• Efficy
  Efficy has developed a complete and highly customisable SaaS (Software as a Service) CRM (Customer Relationship Management) solution. The company wants to become five times bigger, increasing its market share to 5% of the independent CRM market in Europe, within five years.
• Fedrus International
  Fedrus International is an international building materials group that manufactures and distributes roof and façade materials and services with a focus on EPDM rubber and zinc. The company wants to become the preferred partner of building professionals, with high quality standards and a great sense of innovation.
• Lansweeper
  Lansweeper is an IT Asset Management platform provider that helps companies better understand, protect, and centrally manage their IT devices and network. The company has developed a software platform that can be used to create an inventory of all types of technology assets, installed software and users.

Buy-out company of the year:

• Baobab Collection
  Baobab Collection sells diffusers and candles made from hand-blown glass or metal clad with precious leather. The Belgian brand remains true to its values of craftsmanship and excellence by supporting European expertise and craftsmen.
• Sylphar
  Sylphar develops and markets innovative and consumer-friendly OTC products worldwide. OTC products are medicines that are sold directly to the consumer without requiring a doctor's prescription. Examples include tooth whitening products and skin, hair and body care products.

• House of HR
  House of HR is a leading European HR service provider focusing on Specialised Talent Solutions and Engineering & Consulting. Their goal is to connect people’s talents and dreams with successful companies.

Drive innovation and sustainable growth

"Private equity is a financial instrument that is perfectly suited to boost innovation and sustainable growth. The result is strong growth. But private equity involves after all so much more than just raising capital. Venture capital investors also share their knowledge and network, opening many doors. All the nominees have a solid track record and are all in with a chance to win. I am very curious to see which companies will take home an award", says Raf Moons, Head of BNP Paribas Fortis Private Equity.

Find out more about Private Equity at BNP Paribas Fortis.

Source: Press release BVA

Private equity can also be a convenient way for SMEs to strengthen their equity and finance their further growth. But how do you attract private equity investors? And how do they operate?

Private equity can refer to many things. Which investment techniques are involved in private equity and in which cases are they used?

Private equity

Private equity is an instrument used by FPE to acquire an equity interest in a company, either alone or together with other investors. This does not involve a passive investment, but active share ownership: the aim is to engage in a partnership in the medium or long term. In concrete terms, this means that FPE is represented on the Board of Directors as a minority shareholder and in that capacity provides strategic and financial guidance and/or further professionalization of the company.

After a few years, FPE will withdraw from the company again. How this happens exactly is decided in consultation with the co-shareholder(s). They can buy the interest from FPE, but FPE may also sell it to another private equity investor or industrial player.

A company may decide to attract capital for various reasons. A common reason is that the company seeks to finance growth by increasing its activities, internationalising or acquiring other companies. The advantage is that no new private funds or excessive leverage are necessary. Other options are a business transfer or a (partial) buyout of family or less active shareholders.

Venture capital

Venture capital, also referred to as start-up capital, is a form of private equity used to finance early-stage, high-tech companies. These are mainly innovative start-up companies with promising growth prospects. FPE mainly provides venture capital through investments in university venture capital funds.

Mezzanine financing

Mezzanine financing is a long-term subordinated loan for which the company is not required to provide any interim repayments, but makes one lump-sum repayment at the end ('bullet'). These factors mean that the risks of mezzanine financing are higher, which makes it more expensive than a conventional loan with a shorter term, a repayment schedule and securities.

The company does have to generate sufficient returns and liquidity in order to bear the interest charges. The total payment usually consists of a combination of the following elements:

• Cash interest: Interest that is paid at regular intervals during the term.
• 'Payment in kind' (PIK) interest: Capitalised interest that is not paid in cash during the term, but is added to the payable capital and repaid along with the principal.
• Warrant: An instrument that entitles the provider of mezzanine financing to acquire a small percentage of the share capital later. This allows the provider to enjoy a variable payment too.

The exact relationship between these elements depends on the type of company, its future plans and the arrangements it has made with the financier. A company generating a lot of liquidity will be able to cope with a higher cash interest, while a company with a great need for working capital will tend to go for a higher PIK interest or more warrants.

Mezzanine financing is often used for companies facing a financing gap: an investment need that cannot be fully covered with capital or conventional leverage. A company can also opt for this form of financing if does not need external capital injection because there is sufficient equity present or because the company prefers not to open up the capital to new shareholders, for example.

Achieving sustainable growth and professionalisation and yet retaining your individuality? Het Anker Brewery did just this with the support of BNP Paribas Fortis Private Equity.

Het Anker, established in Mechelen city centre, is not just a brewery. Within the walls of the ‘Grand Beguinage’, designated a UNESCO world heritage site, stands not only the brewery but also a three-star hotel and a welcoming brasserie with a shop. Guide tours of the site are also organised.

The Mechelen family brewery that has been producing beer for five generations is known worldwide for its ‘Gouden Carolus’  specialty beers, which have won multiple awards. Since 2010, Het Anker has also been making single-malt whisky based on the mash from Gouden Carolus Tripel beer at De Molenberg distillery, the 17^th-century family farm in Blaasveld.

These successes did not happen just like that. To record this growth and further develop the activities, manager Charles Leclef sought advice from the firm’s main bank, BNP Paribas Fortis. The many years of cooperation, the bank’s knowledge of this sound Belgian SME and a shared vision of sustainability resulted in an even closer relationship. In June 2016, BNP Paribas Fortis Private Equity joined the business via a capital increase. This gave Het Anker the financial scope to implement its expansion plans for the brewery and the distillery activities along sustainable lines. The cooperation with BNP Paribas Fortis Private Equity led to further professionalisation in terms of reporting and governance, while still enabling the business to retain its family identity.

 

Supporting growth

Financing companies and supporting their growth: this is the aim of BNP Paribas Fortis Private Equity. “We provide a financial input in the form of capital or mezzanine financing and we assist and support companies in the long term with the implementation of their strategy and business plan”, says Laurens Boriale, Investment Manager at BNP Paribas Fortis Private Equity. “In every business, we strive to create value by offering our operational and financial skills, placing our international network at their disposal or enabling them to call upon our expertise, which we have built up over several decades.”

Family anchorage

Private Equity is an excellent way of investing in the real economy and reinforcing the SME fabric. What is more, it complements family shareholdings and bank financing. “Our investment is a solution to ensure that the business retains its family anchorage in the future. So the capital increase at Het Anker is a perfect illustration of the BNPP Fortis Private Equity investment approach.”

Fine outlook

Het Anker was immediately won over by the private equity idea. Charles Leclef: “We are grateful that the bank wants to work with us so closely and shares our vision of the future. Sustainability is a central concern for us, too. BNP Paribas Fortis has been our financial partner for over 30 years and once again this time, they thought very constructively and creatively about options for the further growth of Het Anker. I am convinced that the new investment round is preparing us for a ‘golden’ future led by the next generation.” 

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

How can we turn the constraints of the energy transition into a strategic opportunity? “With rigour and pragmatism,” says our partner Climact.

"We support and advise businesses so they can take action and achieve more climate maturity. This includes addressing climate-related obligations, such as the sustainability reporting required under the European Corporate Sustainability Reporting Directive (CSRD)," explains Jerome Meessen, Associate Partner at Climact. "We ensure they get real added value from this, the most tangible result being a reduction in their energy bills or improved resilience of their supply chain and customers in the face of the climate transition. Our approach is both rigorous and pragmatic. Rigorous because we base ourselves on figures and use standardised methods, such as the Greenhouse Gas Protocol, for calculating a company's carbon footprint, thus avoiding the pitfalls of greenwashing. And pragmatic because we always adapt to the company's reality. "

A 5-step process

So, how does Climact support businesses and public organisations?
Jerome Meessen: "Firstly, we help them understand the effects of climate change they are or will be facing. We do this by mapping opportunities and risks, such as flooding of a production site or the risks associated with high carbon prices. We also assess their current impact, i.e., the carbon footprint of their operations. The next step is their vision for the future, in which we define sustainability goals with them, referring to the international standards of Science Based Targets initiative where relevant. We then help them develop a detailed transition plan and implement it on the ground, allowing them to define the content and details of a green energy purchase agreement, for example. Finally, we provide support for communicating their commitment, in line with the CSRD requirements."

CSRD: burden or strategic opportunity?

Many businesses are subject to the CSRD, which enters into force this year, and its reporting process. “The directive aims to provide maximum transparency on how businesses manage their sustainable transition,” says Jerome Meessen. "The reporting focuses on environmental, social and governance (ESG) aspects. "This also allows stakeholders and especially investors to get an objective idea of the progress made, as well as a company's climate ambitions and its exposure to climate change risks."
“The CSRD sustainability reporting is a significant burden for companies,” adds Jérémy Robinet, who coordinates the partnership with BNP Paribas Fortis. "You must adhere to a specific methodology and standards, fill in forms, provide indicators... But it is also an opportunity to develop a solid, well-founded transition strategy that will benefit the company, including its reputation. Businesses can save time with our support, knowing that their reporting complies with regulatory constraints and that their ESG approach creates value and is meaningful."

Climact, a partner of BNP Paribas Fortis

Climact is one of several partners selected by BNP Paribas Fortis to support its corporate customers with non-financial issues. “At the initiative of the bank’s Relationship Manager, we meet companies who want to make progress in terms of their energy and sustainable transition, more specifically for their decarbonisation strategy and to draw up their carbon balance sheet,” explains Jérémy Robinet.
Gilles Roumain, Sustainability Program Officer at BNP Paribas Fortis who oversees the partnership with Climact, says: "The collaboration with Climact allows us to provide solutions to our customers, support them in decarbonising their activities, and continue to build our expertise on these decarbonisation issues. By offering this support, we also reduce our carbon footprint."

“The companies that the bank has referred to us come from all industries,” says Jérémy Robinet. "They are larger companies, e.g., with a turnover of at least 25 million euros or a complex supply chain. This partnership has already led to fifteen collaborations, including with garage door manufacturer RE Panels.

We initially assisted them with drawing up a carbon balance sheet in line with European CSRD requirements.  Management then realised the strategic interest of our work and asked us to perform more specific analyses by product and production site. This, in turn, allowed them to identify best practices. RE Panels really appreciated our approach. We calculated the cost, gains and investment amount for each carbon footprint improvement objective. They also commended us for our rigorous alignment with international standards, a key element to avoiding greenwashing pitfalls."