CAPITAL FOR FAST-GROWING COMPANIES
Crosslantic Capital is one of the leading growth equity firms providing capital and strategic guidance to fast-growing companies with a competitive advantage by using technology. We partner with outstanding management teams as well as entrepreneurs and leverage our extensive operational and industry experience to turn companies into category leaders. Currently, we invest capital from our second fund with triple-digit million assets under management.
Investment Strategy
We have made it our mission to provide capital to fast-developing companies in the growth stage with proven technologies as well as scalable business models.
We believe that every traditional business model or market can increase efficiency with the use of technology. In this respect, we understand how technology changes the way how products are sold and marketed. Companies that do not adapt to these changes are expected to struggle. Whereas agile and innovative players that understand how to respond are expected to thrive. For this reason, we at Crosslantic Capital are excited to support these innovative and agile companies to create superior value.
Especially in the DACH region, the market segment for growth equity is underserved and less institutionalized compared to other territories. Many companies are in need of external growth capital but face a scarce amount of pure growth funds. We at Crosslantic identified these constraints and respond accordingly: by providing the required growth capital, deep sector expertise as well as a collaborative relationship.
As a growth capital fund, we do not invest in startups or pre-revenue companies. Neither do we invest in mature businesses with slow growth. Instead, the capital we provide combines the best from the two separate worlds: venture capital and buyout capital. We target fast-growing companies that have the potential to become world-class organizations. We provide the capital required to accelerate growth and ensure a subsequent targeted use of the proceeds. In doing so, we achieve a sustainably higher trajectory of success.
Typical growth equity comes in the form of a primary investment, i.e. as an investment of new capital into the business. However, we are highly flexible investors. Our individually tailored capital solutions can also come over a secondary investment, i.e. as an acquisition of existing shares. Our investments via equity ranges typically between €10m and €30m and we can take both significant minority and majority ownerships. Our investments may include both equity and debt components. Yet compared to buyout investors, we employ moderate leverage. Thus, all available capital can be used to fuel operations and growth initiatives rather than servicing existing debt obligations.
OUR INVESTMENT CRITERIA
We generally provide growth capital for companies with fast-growing revenues from sustainable sources. These companies usually operate proven business models with a high market demand for their products or services. Our targeted companies always exhibit the potential to scale their business models by leveraging digital sales channels and efficient marketing processes as well as proprietary technology. Accordingly, this establishes the foundation for superior long term value creation for all considered shareholders.
Company is based in the German-speaking region or generates a significant part of their revenues in this region
Geography
Historic improvement of key performance indicators and future margin upside
Key Performance
Company can be scaled through the efficient use of technology or benefit from digitalization
Technology
Structural growth opportunities that have not been fully exploited
Growth Opportunities
Proven model with existing revenues, typically between €10m and €200m
Revenues
Foreseeable path to profitability or already profitable
Profitability
High management quality
Management Quality
Tangible USP versus competition
USP
Working with Crosslantic Capital does not mean adopting a one-size-fits-all-approach. It means understanding the uniqueness of every entrepreneurial story. Our investment approach is driven by the firm belief that aligned interests and visions, as well as hard work and integrity, form the basis for enduring success. The following aspects play a key role in our mission to be your trusted partner and to help you realize your full potential:
CROSSLANTIC WORKS TIRELESSLY TO CREATE
SIGNIFICANT VALUE ADDED
Integrating ESG as part of our investment process
A sustainable approach to investment and ownership is not only a core part of our business model but also of our company conduct. We believe that genuine management of environmental, social and corporate governance (ESG) factors is fundamental to business success and strong investment performance. Having a sustainable approach enables us to address a changing environment that constantly gives rise to new opportunities and risks.
Responsible Investment Policy
Our mission is to support the development of our portfolio companies to build long term value and generate superior returns for our investors. As a significant owner, we also have a responsibility towards society to influence our portfolio companies to act in a socially responsible manner. To reflect our commitment to ESG we have adopted a responsible investment policy (“RI Policy”).
Upholding High Standards
Each of our portfolio companies faces its own ESG challenges depending on their business model and sector, whereas issues such as governance and employee relations are universal to all companies and to our team. Therefore, we also focus on macro topics and an ESG friendly code of conduct, setting an example and integrating high standards.
Quantitative understanding of sales, customer acquisition and marketing KPIs
Every company needs customers. Due to our deep expertise, we know what it takes to scale up your business and to determine the right sales and marketing strategy for your products and services. We understand how new technologies impact sales and marketing and how to react accordingly.
Deep involvement in and direct access to the German-speaking tech ecosystem
We were the spearhead of the digital M&A strategy of Germany’s largest entertainment company. Based on these profound experiences, we perfectly possess the capabilities to expand your company digitally and to take the required actions.
Ability to prepare management and processes for the next level of growth
We know that a growing business faces several challenges. Thus, we support entrepreneurs both in strategic decisions and in important operational issues. Every choice is led by a simple overriding principle: helping to identify the biggest impact on the value of your business.