Flexstone Partners Completes 100th Co-Investment
Flexstone Partners, an affiliate of Natixis Investment Managers, has completed its 100th co-investment as it continues to expand its global, mid -market co-investment practice.
Flexstone has committed €6.3m and reserved a significant amount of additional capital to support the next phase of growth of Pastas Gallo, alongside ProA Capital.
Pastas Gallo was founded by a Spanish entrepreneur and has become the market leader for dry pasta sales in Spain. It also sells pasta sauces, flours and breadcrumbs and is currently expanding into the ethnic dry chilled food market to tap growing demand for chilled ready meals.
Zélie Saint-Zéby, an investment Director in Flexstone’s Geneva office, commented: “Pastas Gallo is a sweet spot mid cap investment for Flexstone, alongside one of Spain’s most successful managers. The company is a hidden gem with great production facilities and, according to our analysis, has the potential to add plenty of value. It is a family business where management can be strengthened and there are multiple levers of value creation including the development of the brand and launch of new categories, sometimes through acquisitions.”
Specific due diligence was conducted by an independent and specialized advisor to assess environmental, social and governance risks associated with the activities and production facilities of Pastas Gallo.
With over 100 co-investments completed since 2008, Flexstone Partners has demonstrated the strength of its global investment platform by increasing its capacity to access attractive private companies backed by small and middle market buyout and growth managers through its network of local offices in the US, Europe and Asia.
“Our co-investment approach is based on decades of investment experience, a large deal pipeline and a systematic, data driven selection process. Over time, based on our experience as well as academic research, we have developed and refined a proprietary “Sweet Spot” selection tool which, together with our detailed due diligence process explains the success of our co-investment practice.”, said Eric Deram, Managing Partner at Flexstone.
Flexstone’s co-investing philosophy focuses on providing increased exposure to high conviction managers in their core areas of expertise in terms of core sectors, geographies, type of deals, or investment size bracket.
“This framework is a key element to strengthening our GP relationships and to delivering attractive risk-adjusted returns through negative selection risk mitigation.”, continues Eric Deram.
Flexstone’s outstanding co-investment track-record shows the quality of its deal flow and the strength of its investment selection process. Out of 100 co-investments completed since 2008, 38 are fully realized, generating an attractive risk & return performance with a combined 3.0x multiple of invested capital, a 34% gross IR and a loss ratio of 3.4%.
“All our mature co-investment vehicles rank first quartile in their category. In particular, our first quartile DPIs show our ability to deploy our clients’ capital and distribute profits in a time efficient manner”, concludes Eric Deram.
For further reading:
About Flexstone Partners (“Flexstone”)
Flexstone is a leading investment solutions provider in private assets with a global reach and local footprints in New York, Paris, Geneva, and Singapore. It specializes in the selection of private equity, private debt, real estate, and infrastructure fund managers for investment by Flexstone’s clients. Flexstone manages primary and secondary investments as well as co-investments. Flexstone’s expertise is distinguished by a high flexibility in building customized portfolios that are tailored to the unique needs and constraints of each investor whether institutional or private individual. Flexstone offers a large range of services, from advising on private assets portfolio construction to the management of fully discretionary separate accounts and funds of funds. Flexstone, with more than 40 professionals, manages or advises $8.1 billion.* It is a majority owned subsidiary of Natixis Investment Managers, one of the largest investment managers worldwide. Further information: www.flexstonepartners.com
* Source: Flexstone Partners at 08/31/2020. Assets under management and advisory made up of commitments for closed-end private placement funds, and sum of Net Asset Value and unfunded commitments otherwise.
Flexstone Partners
An affiliate of Natixis Investment Managers
Flexstone Partners, SAS – Paris
Investment management company regulated by the Autorité des Marchés Financiers. It is a simplified stock corporation under French law with a share capital of 1,000,000 euros Under n° GP-07000028 –Trade register n°494 738 750 (RCS Paris)
5/7, rue Monttessuy,
75007 Paris
www.flexstonepartners.com
Flexstone Partners, SàRL – Geneva
Independent (unregulated) asset manager, under Swiss Federal Act on Collective Investment Schemes (“CISA”), supervised by Commission de haute surveillance de la prévoyance professionnelle (“CHS PP” and regulated by the Swiss Financial Market Supervisory Authority (“FINMA”) under Anti Money Laundering requirements. It is a limited liability company with a share capital of 750 000 CHF.
Trade register n° CH-660-0180005-1
8 chemin de Blandonnet
Vernier 1214 Geneva
Switzerland
Flexstone Partners, LLC – New York
Delaware corporation, registered with the United States Securities and Exchange Commission as an investment adviser
28th floor of 745 Fifth Avenue, New York, NY 10151.
Flexstone Partners, PTE Ltd – Singapore
61 Robinson Road, #08-01A Robinson Centre
Singapore 068893
Natixis Investment Managers
RCS Paris 453 952 681
Share Capital: €178 251 690
43 avenue Pierre Mendès France
75013 Paris
www.im.natixis.com
This communication is for information only and is intended for investment service providers or other Professional Clients. The analyses and opinions referenced herein represent the subjective views of the author as referenced unless stated otherwise and are subject to change. There can be no assurance that developments will transpire as may be forecasted in this material.
Copyright © 2021 Natixis Investment Managers S.A. – All rights reserved.
Flexstone has committed €6.3m and reserved a significant amount of additional capital to support the next phase of growth of Pastas Gallo, alongside ProA Capital.
Pastas Gallo was founded by a Spanish entrepreneur and has become the market leader for dry pasta sales in Spain. It also sells pasta sauces, flours and breadcrumbs and is currently expanding into the ethnic dry chilled food market to tap growing demand for chilled ready meals.
Zélie Saint-Zéby, an investment Director in Flexstone’s Geneva office, commented: “Pastas Gallo is a sweet spot mid cap investment for Flexstone, alongside one of Spain’s most successful managers. The company is a hidden gem with great production facilities and, according to our analysis, has the potential to add plenty of value. It is a family business where management can be strengthened and there are multiple levers of value creation including the development of the brand and launch of new categories, sometimes through acquisitions.”
Specific due diligence was conducted by an independent and specialized advisor to assess environmental, social and governance risks associated with the activities and production facilities of Pastas Gallo.
With over 100 co-investments completed since 2008, Flexstone Partners has demonstrated the strength of its global investment platform by increasing its capacity to access attractive private companies backed by small and middle market buyout and growth managers through its network of local offices in the US, Europe and Asia.
“Our co-investment approach is based on decades of investment experience, a large deal pipeline and a systematic, data driven selection process. Over time, based on our experience as well as academic research, we have developed and refined a proprietary “Sweet Spot” selection tool which, together with our detailed due diligence process explains the success of our co-investment practice.”, said Eric Deram, Managing Partner at Flexstone.
Flexstone’s co-investing philosophy focuses on providing increased exposure to high conviction managers in their core areas of expertise in terms of core sectors, geographies, type of deals, or investment size bracket.
“This framework is a key element to strengthening our GP relationships and to delivering attractive risk-adjusted returns through negative selection risk mitigation.”, continues Eric Deram.
Flexstone’s outstanding co-investment track-record shows the quality of its deal flow and the strength of its investment selection process. Out of 100 co-investments completed since 2008, 38 are fully realized, generating an attractive risk & return performance with a combined 3.0x multiple of invested capital, a 34% gross IR and a loss ratio of 3.4%.
“All our mature co-investment vehicles rank first quartile in their category. In particular, our first quartile DPIs show our ability to deploy our clients’ capital and distribute profits in a time efficient manner”, concludes Eric Deram.
For further reading:
- Flexstone Invests in Two Deals in US and Europe
- Flexstone's Co-Investment Framework
- Flexstone Partners Sweet Spot Proprietary Framework
- How to Hit the Buyout Sweet Spot?
Flexstone is a leading investment solutions provider in private assets with a global reach and local footprints in New York, Paris, Geneva, and Singapore. It specializes in the selection of private equity, private debt, real estate, and infrastructure fund managers for investment by Flexstone’s clients. Flexstone manages primary and secondary investments as well as co-investments. Flexstone’s expertise is distinguished by a high flexibility in building customized portfolios that are tailored to the unique needs and constraints of each investor whether institutional or private individual. Flexstone offers a large range of services, from advising on private assets portfolio construction to the management of fully discretionary separate accounts and funds of funds. Flexstone, with more than 40 professionals, manages or advises $8.1 billion.* It is a majority owned subsidiary of Natixis Investment Managers, one of the largest investment managers worldwide. Further information: www.flexstonepartners.com
* Source: Flexstone Partners at 08/31/2020. Assets under management and advisory made up of commitments for closed-end private placement funds, and sum of Net Asset Value and unfunded commitments otherwise.
Flexstone Partners
An affiliate of Natixis Investment Managers
Flexstone Partners, SAS – Paris
Investment management company regulated by the Autorité des Marchés Financiers. It is a simplified stock corporation under French law with a share capital of 1,000,000 euros Under n° GP-07000028 –Trade register n°494 738 750 (RCS Paris)
5/7, rue Monttessuy,
75007 Paris
www.flexstonepartners.com
Flexstone Partners, SàRL – Geneva
Independent (unregulated) asset manager, under Swiss Federal Act on Collective Investment Schemes (“CISA”), supervised by Commission de haute surveillance de la prévoyance professionnelle (“CHS PP” and regulated by the Swiss Financial Market Supervisory Authority (“FINMA”) under Anti Money Laundering requirements. It is a limited liability company with a share capital of 750 000 CHF.
Trade register n° CH-660-0180005-1
8 chemin de Blandonnet
Vernier 1214 Geneva
Switzerland
Flexstone Partners, LLC – New York
Delaware corporation, registered with the United States Securities and Exchange Commission as an investment adviser
28th floor of 745 Fifth Avenue, New York, NY 10151.
Flexstone Partners, PTE Ltd – Singapore
61 Robinson Road, #08-01A Robinson Centre
Singapore 068893
Natixis Investment Managers
RCS Paris 453 952 681
Share Capital: €178 251 690
43 avenue Pierre Mendès France
75013 Paris
www.im.natixis.com
This communication is for information only and is intended for investment service providers or other Professional Clients. The analyses and opinions referenced herein represent the subjective views of the author as referenced unless stated otherwise and are subject to change. There can be no assurance that developments will transpire as may be forecasted in this material.
Copyright © 2021 Natixis Investment Managers S.A. – All rights reserved.