The asset light opportunity: Digital disruption, rapid growth and sustained profitability
We practice an investment philosophy founded in our backgrounds as entrepreneurs, operators and investors across the Financial Sector: we use intense operational engagement and active M&A to drive growth and profit margins.
We focus on areas in the Financial Sector mid-market where business model changes in asset light services offer the highest growth and profit potential. Through our operational model, we enable swift changes and rapid growth by leveraging data and analytics to unlock growth and innovative, low cost platforms. Through M&A, we deliver geographic, product and service expansion through carefully calibrated acquisitive growth.
Since 2005 our Private Equity strategy has attracted over €2.5bn of capital and deployed more than €2bn into a diverse portfolio across three funds. We target buyout and growth investments in mid-market European Financial Sector companies, investing equity tickets of €30-150m, at times offering co-investment opportunities to our investors.
We partner with founders and management teams to build dynamic, data-driven growth businesses
We deploy our proven operational engagement model to support digital innovators that can deliver rapid growth and sustained profitability, building on our track record as partners to founders, management buy-out teams and management buy-in teams. Digitalisation is central to our strategy, and our track record of harnessing tech-enabled solutions to optimise and differentiate has enabled us to consistently create highly valuable assets.
Deal signed, pending regulatory approval
Wealth Management, UK
First Names Group
Trust & Corporate Services, Multi-Jurisdictional
Cabot Credit Management
Consumer Debt Management, UK
Fund I / Fund II
Established in 2004, heidelpay is a fast-growing fintech in the European payments market providing in-store, online, and mobile payment acceptance solutions across a wide range of payment methods. Following AnaCap’s investment in 2017, the company accelerated its organic growth and inorganic grow plans, embarking on an extensive buy and build program, increasing market share, geographic footprint and adding further to its leading range of technological payment solutions.
With AnaCap’s support, heidelpay transformed from a key player in a fast-growing market, with a strong technology platform, into a fast-growing, omni-channel disruptor in the DACH e-commerce sector and rapidly investing to stay at the forefront of technological innovation.
During AnaCap’s ownership heidelpay increased revenue and EBITDA by more than 7x, processing in excess of €7bn of digital payments per annum for over 30,000 merchants. Representing a 5x increase in the number of payment transactions processed since acquisition to over 100,000,000 a year.
The agreement to sell the business to KKR was signed in August 2019, with closing of the transaction expected during the first half of 2020.
Established in 2006, Ellisphere is French business operating as a leading provider of corporate data analytics, compliance and risk management solutions, collecting and processing data to provide high quality information and scoring tools to support the business decision-making processes of its clients.
Following AnaCap’s investment in 2017, Ellisphere focused on the digitisation of its processes, with the successful implementation of Darwin, a new technological platform based on artificial intelligence and machine learning delivering powerful data mining and enrichment capabilities. Ellisphere also expanded its core offering to include a market-leading compliance proposition, which grew 300% during AnaCap’s investment. Overall, Ellisphere demonstrated strong embedded earnings with 96% renewal rates, driven by high customer loyalty.
The investment was successfully realised in 2019 when the company was acquired by a consortium formed by Andera Partners, Tikehau Capital and Bpifrance, generating a 2.6x return on invested capital and a 51% IRR.
Established in 2005, Simply Business was among the earliest online brokers in the commercial insurance industry. Prior to AnaCap’s investment in 2013, growth had stalled as the under-invested legacy technology platform was inefficient and limited the rate of new product development.
With AnaCap’s support, a new technology platform was launched incorporating a new predictive model of customer buying behaviours, and Simply Business became the first commercial insurance broker in the UK to deploy real-time pricing. Data collection processes were also reengineered, and the actionable information collected resulted in a 50% improvement in sales conversion and 37% improvement in renewal rates.
Overall, the investment in growth delivered a 75% increase in revenue over the 3-year hold period and, coupled with numerous measures to optimise the cost base, EBITDA grew by 7x over the same period with margins improving by over 3x.
The investment was successfully realised in 2016 when the company was acquired by Aquiline Capital Partners, generating a 4.2x return on invested capital and a 51% IRR.