Focus
- Down 2 Earth Capital consciously uses its investment funds to focus on SMEs headquartered in Belgium with an EBITDA of €2–10M. We believe that physical proximity is essential to close cooperation with our partners.
- Our team members have extensive track records in various sectors, allowing us to avoid limiting ourselves to one specific sector for the investment fund. The quality of the investment is paramount. Our speciality lies with Belgian SMEs in the following situations:
- Family succession
- Growth financing
- A management buy-out or management buy-in
- The next step in professionalisation and internationalisation
Investment criteria
We invest through both majority and minority shareholdings. The companies we work with all meet the following investment criteria:
- Profitable track record
- EBITDA of €2–10M
- Head office or decision centre located in Belgium
- Sufficient growth opportunities, both nationally and internationally
Given the team’s extensive experience, we are also a reliable partner for more complex transactions, both on a financial level and an operational level. In the latter case, we also maintain very close contact with In 2 Action Capital, a sister fund for companies in more exceptional situations.
Companies can call on our services in the following cases:
Family succession
A generational change is a pivotal point for many family firms and is often accompanied by many changes. Let’s look at some crucial questions that play a role in a family succession:
- What are the family’s ambitions?
- Who is going to run the company?
- What is the future governance model?
- What role will everyone play?
- How is ownership organised?
Do you feel it is time to leave the family business to the next generation? Let us be your partner in the new growth phase and the professionalisation of your family business.
Management buy-out
In a “management buy-out”, or “MBO”, the existing management takes over all or part of the company from the current owners. As the acquirers know the company through and through, the due diligence process is often limited. On the other hand, support may be needed to pay the buy-out sum.
Are you looking for an external investor to help the existing management take over the company? We are happy to discuss the possibility of assisting with the transaction.
Management buy-in
In a “management buy-in” or “MBI”, an external management team takes over the company from the existing shareholders. The day-to-day management of this company becomes the responsibility of the new management team.
Are you looking for a private equity fund to support you financially and strategically in the acquisition? We are happy to be your investment partner and help with the operational implementation.
Owner buy-out
In an “owner buy-out” or “OBO”, the company is taken over by a new holding company of the current owner together with an investor, allowing the current owner to sell part of the business and retain the rest by reinvesting in the holding company.
Are you looking for an investor for a full or partial company takeover? We are happy to be your partner.
Carve-out
Companies often have different activities. The company may decide to focus exclusively on its core business and divest itself of ancillary activities.
Are you looking for an investment partner to help you start up a new business for your divested activities? We are happy to discuss the financial and operational possibilities with you.
Growth financing
All business growth starts with innovation, but still requires sufficient financial resources. In the event of a deficit, investors can provide a much-needed capital injection.
Are you looking for a private equity fund to finance your company’s growth? At Down 2 Earth Capital, we have extensive experience in various sectors.
Recapitalisation
A recapitalisation alters the capital structure of the company. A recapitalisation can translate to:
- Attracting new share capital
- Incorporating capital reserves
Do you want to attract new share capital? We are happy to present the entry of our private equity fund as an option.
Our approach
Active involvement
We actively support every SME in which we invest. Our aim is always to create value through business growth, internationalisation and professionalisation.
Our cooperation is founded on partnership and close consultation with your company’s management. We remain closely involved in strategic decisions while staying out of your day-to-day management. In addition to our experienced team, we also rely on an extensive network of CEOs, entrepreneurs and managers.
No-nonsense
It’s in our name as well as our DNA: short on the big words, ample experience, and pragmatism. We always maintain honest and sincere communication in our collaborations with SMEs and other partners.
Transparency
We believe in the value of agreements and promises. Our ambition is to achieve a win-win at all times, by creating a common agenda with room for all interests. We communicate openly and smoothly. To summarise this with a trusted cliché: good agreements make good friends.
Realism
Entrepreneurship inevitably comes with risks and setbacks—shit happens. At Down 2 Earth Capital, we understand that perfectly, but that does not stop us wanting to be your partner. Our team has weathered many storms, and our years of experience have taught us to make difficult decisions.
Strategy fundamentals
Growth and internationalisation
The spearhead of our strategy is growth, in all its facets. Business growth remains the most important value creator for every SME. Depending on the company, this can be achieved organically in the home market or through international expansion or acquisitions. For many of our companies, we aim for a combination of all these facets.
Professionalisation
Most SMEs have an excellent product and customer knowledge but sometimes struggle with a few common problems in their business operations. Above all else, our team strives to be a partner in the further professionalisation of:
- Internal systems and processes: IT, HR and organisational structure
- Finance: reporting, KPI’s, control of working capital
- Growth: strengthening existing customer relationships, achieving market expansion
- Innovation: developing USPs, keeping margins sufficiently high
Corporate culture
At Down 2 Earth Capital, we do more than just look at spreadsheets. Reporting and figures are important, but we always put people first. The financial health of a company is inextricably linked to its corporate culture.
We believe that a good fit between the company and us as an investor is essential and that mutual trust forms the basis of successful cooperation.
Realistic leverage
Debt financing is a key contributor to value creation in any private equity context. At Down 2 Earth Capital, we keep the balance sheet realistic to avoid excessive pressure on your company and to sufficiently facilitate all growth opportunities.
Exit
As a financial party, Down 2 Earth Capital is a temporary partner; our goal is to enable your company to take the next step in its business growth. We exit the company after a period of 5 to 8 years. Openness and transparency are paramount to us, even in this final stage. The exit strategy is always drawn up in cooperation with management and any other shareholders.
Our investors
Down 2 Earth Capital is an independent investment fund. To a large extent our shareholders are private investors: CEOs, entrepreneurs and industrial families. As a result, our investors have extensive sector expertise and know-how at their disposal. They are part of the network that we regularly call upon to assist the companies in our private equity fund.
In addition, several institutional investors have invested in our funds.