The merger of Minimax and Viking Group - IK Investment Partners

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The merger of Minimax and Viking Group - IK Investment Partners

TEAM

PRESENTATION:

GERMANY

FROM LEFT: Anders Petersson - deputy director, Nils Pohlmann - associate, Josephine Ahlers - assistant, Detlef Dinsel - managing partner, Nils Lüssem - associate direcor

DEAL HUNTING RETURNS

AS THE DUST STARTS TO SETTLE

IK IS SET to capitalise on Germany’s return to growth having

successfully steered its portfolio through the economic and

financial challenges over the last 18 months.

With an enviable reputation within Germany’s

business and financial community, a portfolio

of promising investments, a track-record of

successful realisations and an experienced

deal-making team, IK is well-placed to

capitalise on the investment opportunities

beginning to emerge from the country’s economic recovery.

“Forward earnings visibility has improved significantly in recent

months, stability has returned and a pipeline of potential deals is

beginning to form once more,” says IK managing partner Detlef Dinsel.

Alongside the traditional, privately-owned Mittelstand, Germany’s

major corporates are also likely to be a reliable source of dealflow

as they embark on post-recession restructuring and streamlining

programmes and seek to shed non-core assets.

“Germany has many large industrial groups which are wellpositioned

internationally with strong products and skills. These will

continue to generate good investment opportunities as will smaller,

family-run concerns which are becoming increasingly interested in

PE possibilities,” says deputy director Anders Petersson. “In all cases

we are looking for companies that are leaders in their respective fields

with good brands, top technologies, solid management and strong

development potential,” he explains.

Petersson believes that the latter half of 2010 and beginning of 2011

could well be a good time to invest. “From a process point of view and

also from a timing perspective this is likely to present a good ‘window

of opportunity’ since we are at, or near, the bottom of the cycle and the

business cycle is much less uncertain than it was,” he notes.

Associate director Nils Lüssem believes that as corporate profitability

stabilises and banks’ appetite for supporting management buyouts

returns, it is just a matter of time before Germany’s PE market returns to

a healthy level of sustainable activity. “The trend is definitely ‘up’ with

the sale of quality assets and proprietary situations emerging once more,”

he says.

“During 2009 everyone was essentially operating in uncharted

territory and no one quite knew what was happening. Now, however, the

market is returning steadily and, with debt financing improving, we can

confidently anticipate a reasonably strong bounce-back within the next

12 months,” agrees Dinsel.

Enduring performance

With deal-hunting back on the agenda, what is particularly gratifying

for IK’s four-strong investment team in Germany is the way its portfolio

IK NEWS 1/10 – 7

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