Efficient access to broadly diversified portfolio of some 30 co-investments in small and mid-cap companies // Repeat of successful co-investment strategy, with focus on growth via buy-and-build transactions // Portfolio construction successfully completed for prior fund, Golding Buyout Co-Investment 2020
Munich – Following the successful closing in December 2022 of Golding Buyout Co-Investment 2020, which was substantially oversubscribed at €273 million, Golding Capital Partners now announces the continuation of the product series with its second-generation Golding Buyout Co-Investment 2023 fund. Golding is staying true to its proven strategy, and offering investors efficient access to a broadly diversified portfolio of around 30 co-investments from the small and mid-cap segment, with a focus on fast-growing sectors in the USA and Europe. The investment strategy will again be centred around successful companies and supporting their growth by means of buy-and-build transactions. The predecessor fund will finish building its portfolio in summer 2023, when it will hold investments in 26 companies.
“Offering co-investment solutions is a core element of our growth strategy. Our Buyout Co-Investment 2023 fund picks up where the earlier successful programmes left off and is our fifth co-investment fund that Golding has brought to market. We have been very successful with our co-investment strategy in the buyout sector since 2015 and are now starting to build our second dedicated co-investment fund. We have established an impressive track record, and for more experienced investors in particular, access to our strong deal flow, rigorous due diligence and highly competitive cost structures is an attractive proposition”, explains Dr Matthias Reicherter, Managing Partner and Chief Investment Officer at Golding.
With this Article 8 fund, the investment team led by Dr Matthias Reicherter and Daniel Boege that has worked together for more than ten years will again deliver multidimensional diversification across companies, co-investment partners, geographic markets and economic sectors. The portfolio will ultimately consist of around 30 individual investments based in Europe and North America. Target sectors particularly include technology, software, healthcare and B2B services.
Golding Buyout Co-Investment 2020 makes a compelling argument
The first-generation Golding Buyout Co-Investment 2020 held its final closing in the fourth quarter of 2022 and will be fully committed by summer 2023 with investments in 26 mostly mid-market businesses. Although the market environment was challenging and the programme is still only at an early stage of its development, the current performance is well above the target return of 16 to 18 per cent. A first highly successful exit has already been achieved with the software company HRworks, in which the fund invested in summer 2020 alongside Maguar Capital Partners.
“The strong operating development of the portfolio companies and the exceptionally positive performance by the predecessor fund are testimony to the quality of our selection process. Thanks to our extensive network we are currently seeing very many attractive co-investment opportunities, partly as a result of the complex fundraising market for buyout funds. For us the biggest challenge is still to satisfy our own standards in terms of investment quality”, says Daniel Boege, Partner and Head of Buyout at Golding.
Longstanding investment expertise
Golding can look back on more than two decades of experience and a track record of some €2.6 billion in assets under management in the buyout sector. In the co-investment segment alone the asset manager has made some 30 investments comprising a total transaction volume of more than €250 million since 2015.
Golding Buyout Co-Investment 2023 is structured in accordance with Article 8 SFDR and has a minimum commitment of €10 million. The fund has a planned life of ten years with one optional extension. It will aim for a net IRR of 16 to 18 per cent p.a.