MBOs in Germany since 1991

Halder’s entry to the German market is a bold step:

Private equity is a barely known concept, entrepreneurs often do not understand or resist offers from interested buyers, and sponsors see little potential. Some market players are facing difficulties as a result of poor investments. In 1990, the German Private Equity and Venture Capital Association (BVK) reports € 2 billion funds under management, € 642 million of which having been raised that very year.


Paul De Ridder (left), Joachim Kramer who passed away in 2001 following a severe illness, and Susanne Quint establish Halder’s Frankfurt office. Previously, they had worked together at Continental Bank, which operated in Germany and had a leading position as a buy-out lender, primarily in the US.

Paul De Ridder and Joachim Kramer – Halder 25 Susanne Quint – Halder 25

Halder forms an Advisory Board to complement the German investment team’s financial expertise with operational experience. It includes Hermann von Bruck, former CEO of Stinnes AG, as its Chairman and Halder founders Paul Deiters and René Smits.

Hermann vom Bruck – Halder 25


Slow start

Since the end of the 1980s, private equity investments are limited to small and medium-sized, enterprises and transaction levels remain low. Following German reunification, some activity is geared towards companies from Eastern Germany held by Treuhandanstalt, the government institution overseeing the transition from state to private ownership. The figures in the adjacent graph are in Deutsche Mark as the euro is still a decade away.

Slow start – Halder 25


Michael Wahl works in M&A at Lazard before joining Halder. He is appointed Managing Director in 2001.

Michael Wahl – Halder 25


Dr Hans-Jürgen Knauer, previously CEO of Stinnes AG and executive board member at Veba, becomes the new Chairman of the Advisory Board. Its membership grows to seven members by the end of his term in 2004; most of the new members have an industrial background.


Growth accelerates

In 1997, German private equity firms manage nearly € 7 billion in assets, of which € 2.2 billion represent capital raised during the year. Interest in private equity is growing by leaps and bounds as the market becomes more mature: corporate groups start to sell off larger subsidiaries to streamline their organisation. US-based institutions are attracted to this new quality in transactions. At the same time, Deutsche Börse takes a more active role in German corporate finance – for example, a new trading platform for small technology firms is launched in 1997 (“Neuer Markt”) – and public listings become an option for private equity exits. Attitudes towards financial investors change: from 1997, private equity companies receive € 1 billion or more in fresh capital per year. Halder turns to the stock market to exit Techem in 1999 and 1&1 in 2000.

Growth accelerates – Halder 25


Gimv acquires Halder

Gimv is a Belgian private equity investment group formed in 1980 and listed on the Antwerp Stock Exchange with a market capitalisation of € 1.5 billion. It acquires Halder in 2000 and by 2008, only the German team continues to operate under the name “Halder”.

Gimv acquires Halder – Halder 25


Record inflow of fresh capital

While booming financial markets depend more and more on the “New Economy”, German private equity companies have record inflows of fresh capital in 2000 (€ 5.2 billion), taking total funds under management to € 15.6 billion. The New Economy then morphs into the dot-com bubble – which eventually bursts. The September 2001 attack on the World Trade Center in New York and the war in Iraq trigger a bear market in stocks; the economy experiences several years of weak growth. Under Halder’s tight supervision, the portfolio comes through the crisis in good shape.

Record inflow of fresh capital – Halder 25


Halder launches its first country fund for Germany with € 155 million in capital and establishes a Supervisory Board. Dr Peter Wendt, becomes Chairman. Previously, he was head of BHF-Bank’s private equity operations and practised at White & Case as an attorney, advising many SMEs. He was also member of Halder’s Advisory Board from 1993 to 2009.

Dr. Peter Wendt – Halder 25


Strategies to increase value

The new fund, Halder GIMV Germany, sees a change of approach: to unlock the potential of its portfolio companies, Halder becomes more closely involved in underlying corporate issues and completes its first add-on acquisitions, strategy changes and major internationalisation steps.

Dr Wilfried Kaiser is the next Chairman of Halder’s Advisory Board. The Board is expanded to nine members with a background in industry sectors relevant to the portfolio; many are engineers.

Dr. Wilfried Kaiser – Halder 25

Buy & build

Prüm-Garant is formed by combining two spin-offs from larger conglomerates. Following the merger, it immediately becomes the second-largest company on the German market for interior doors.

Buy & build – Halder 25


Adjust strategy and go abroad

Cosmetics manufacturer ADA’s strategy is being focussed on the market for hotel amenities, and non-core activities are terminated. In parallel, Halder pushes internationalisation of the company’s sales and procurement operations in Europe and Asia.

Adjust strategy and go abroad – Halder 25


Cash returned to investors from Germany reaches € 500 million (cumulative).

Mathias Fackelmeyer joins Halder from DZ Bank and is appointed Managing Director in 2015.

Mathias Fackelmeyer – Halder 25

Major crisis

The collapse of the US mortgage market precipitates a global financial and economic crisis. It disrupts the boom experienced by private equity companies in Germany since overcoming the setbacks from the beginning of the decade: huge amounts of available capital – funds under management grow to € 35 billion in 2008 – and an increasing number of market players face a supply of investment opportunities which has ceased to grow, driving valuations to new records. Given the surplus capital of many investors, valuation levels remain high, and with little room for debt financing, the flow of transactions runs dry. Halder weathers the storm with the smallest portfolio since the mid-1990s.

Michael Wahl – Halder 25

More capital expenditure

Geka, a cosmetics packaging manufacturer, invests $2 million to build a new factory near Chicago. Beginning in 2009, the company supplies US cosmetics manufacturers directly and taps the potential offered by the North and South American markets.

More capital expenditure – Halder 25


Growth and a changing Advisory Board

The investment period for Halder’s second German country fund (€ 325 million in capital) begins. In 2009 and 2010, six members retire from the Advisory Board, some of them continue to work with Halder as senior advisors or on the Supervisory Board. Professional experience of the next generation of board members again covers a broad range of industries.

Halder‘s 20-year return on investment in Germany reaches 18.92% (net) in 2009, compared to a benchmark return of 11.4% (net) for European SME buy-outs. In 2010, the Frankfurt team

1) Horizon IRR prior to 31 December 2009, for European private equity funds
(vintage years 1980-1990)
2) Halder investments in Germany
Source: EVCA, Thomson Reuters, Halder

Horizon-IRR – Halder 25

1) Horizon IRR prior to 31 December 2009, for European private equity funds
(vintage years 1980-1990)
2) Halder investments in Germany
Source: EVCA, Thomson Reuters, Halder


Private equity enters the financing mainstream

After two decades, private equity has finally “arrived” on the German market: more than 200 investment firms manage nearly € 40 billion in capital. They support some 1,300 German companies employing 1.2 million people and generating more than € 200 billion in sales.

Private equity enters the financing mainstream – Halder 25

Back to normal

By 2010, the German economy has survived the recession and launches a spectacular export-fuelled recovery. This is good news for Halder’s portfolio companies, who see their EBITDA exceed pre-crisis levels. The value of the portfolio is recovering fast.

Back to normal – Halder 25


Systematic value creation

Once the private equity market returns to normal after the financial and economic crisis, Halder begins to standardise and refine its approaches to value creation: in addition to international growth, concepts include changes in corporate strategy, increased capital expenditure and add-on acquisitions to drive value enhancement. In many cases, a combination offers the best prospects.

Investment and internationalisation

VAG, a supplier of large valves and fittings for water utilities, launches a € 38 million investment programme to expand its international manufacturing capability; a portion of € 15 million is invested in Asia. In China, the company creates a low-cost manufacturing base and benefits from the country’s growing infrastructure investment. Exporting from China is a distinct possibility over the long term.

Investment and internationalisation – Halder 25


Investment and internationalisation

CCN, a manufacturer of precision components for turbochargers, is also heading to China to close a gap in its manufacturing network serving the global automotive industry. Investments of € 35 million are planned to broaden the manufacturing footprint in 2011–2015.

Investment and internationalisation – Halder 25

Wback – Halder 25

More capital expenditure

Wback produces hamburger buns on an industrial scale at two German locations to supply customers in Western Europe. Future growth requires more capital expenditure for the expansion of its production and logistics capabilities.

Wback – Halder 25

Christian Muschalik

Investment Manager

Christian Muschalik – Halder 25

Christian Muschalik

Investment Manager

After being part of Gimv Group for more than a decade – where the Frankfurt-based team continued to work under the name “Halder”, managing its own fund – the German partners strike out on their own through an MBO.

Halder 25

Halder becomes a member of the UNPRI, a United Nations initiative for responsible investment (www.unpri.org), and publishes its first report according to the organisation’s guidelines in 2013/2014.

UNPRI – Halder 25


Diversify and go (further) abroad

Amoena is a global leader in manufacturing high-quality silicone breast forms and functional apparel for women recovering from surgery; its production facilities are located in Germany and Costa Rica. The company continues to expand its market position: sports- and leisurewear are added to the product range, and additional markets are being developed in Asia.

Amoena – Halder 25

Anja Böhme

Investment Manager

Anja Böhme – Halder 25

Buy & build

Aqua Vital is one of Germany’s leading providers of water dispensers. The acquisition of competitor Revos strengthens market position and growth dynamics.

Aqua Vital – Halder 25

Wolfgang Deml is the new Chairman of the Advisory Board. He introduces changes to the structure of portfolio companies’ supervisory boards: appointees no longer serve on Halder’s Advisory Board at the same time.

Wolfgang Deml – Halder 25

Private Equity International, the industry magazine, names Halder “Private Equity Firm of the Year 2013” in Germany.

Private Equity International – Halder 25


Change of strategy

Helmut Klingel GmbH CNC-Zerspanung becomes KLINGEL medical metal. The company gears its strategy towards medical technology and completes an add-on acquisition in the sector, increasing med-tech‘s share of sales to 70%. It is the fourth add-on for Halder-GIMV Germany II – after Hytec for Keymile, Revos for Aqua Vital and PRAE-TURBO for CCN.

KLINGEL medical metal – Halder 25


Booster Precision Components – Halder 25

Acquisition, investment and internationalisation

After VAG and CCN, PRAE-TURBO establishes manufacturing operations in China. Halder combines CCN und PRAE-TURBO to form Booster Precision Components. Within the group, PRAE-TURBO expands its formerly German production base to North America and Asia using CCN‘s network.

Booster Precision Components – Halder 25

Philipp Scheier

Investment Manager

Philipp Scheier – Halder 25

Philipp Scheier

Investment Manager