Injection of funds by specialised investors into private companies with the aim of achieving high rates of return. [1]
This is equity or quasi equity funding provided by professional investors to mature private companies with the aim of gaining a financial return through interests, dividends and capital gains at exit.
Example
Fred van Olphen opened the outdoor retail chain Bever Zwerfsport’s first store, in The Hague. In less than 20 years, Bever would become the Dutch leader in outdoor retailing with over 25 stores in the Netherlands.
Mr Van Olphen targetted the high-end of a growing market by offering a variety of premium brands with a good service. In 2004, with the management buy-in by Gimv, the private equity and venture capital provider had a controlling stake of 80%, and management had 20%.
Since then, Bever has penetrated the Dutch market with additional stores and bolstered profitability by optimising its supply chain. Gimv exited this investment in 2007 through a trade sale to AS Adventure, the market leader in outdoor retailing in Belgium. [2]
