Deminor and Noshaq join forces to launch SWITCH FUND, the first Belgian fund dedicated to managing and accelerating exits of minority shareholdings as well as carrying out investment operations in an early maturity.
Deminor and Noshaq found that public and private investment institutions in both Wallonia and Brussels deploy most of their added value during the first five years of supporting a growing company.
After this period, the added value of the partnership may in some cases slightly falter. When certain essential issues arise (renewing the leadership, reforming the governance, etc.) the entrepreneur and his shareholders often adopt a wait-and-see attitude, which results in the participation being “blocked” and/or becoming less liquid.
The exit of these minority shareholdings may be made more difficult or may be achieved in adverse conditions (for example with the acceptance of a discount).
In order to overcome these difficulties, a third-party intervention with an experience in managing shareholdings and negotiation might create value and maximize the chances of an exit on favourable terms.
The creation of SWITH FUND aims to increase the return and rapid rotation of assets under management, but also to accelerate investments in the Walloon and Brussels economies, supporting the employment in the French-speaking part of Belgium by increasing the size of new projects financed by the fund and by facilitating the transfer of businesses.
The fund will therefore respond to the needs of minority shareholders who will be able to benefit from the liquidity, which is sometimes lacking, leading to additional financial resources which could be reinvested in other SMEs.
SWITCH FUND focusses on the exit of shareholdings of the Noshaq Group as well as public and private third-party investors who wish to quickly recover a part of the discount.
SWITCH FUND offers an interesting solution to investors looking for a quick return on their investment.
The objective is to raise 35 million euros within the following months (in capital and loans or bonds) with the willingness to achieve the first investments during the first semester of 2021.
For more information on this subject, do not hesitate to contact Pierre-Alexis Léonard or Pierre Nothomb.
Click here to read the online article in l’Echo of the 5th November 2020.
Click here to read the online article in Trends Tendance of the 5th November 2020.