A combination of solid financial analytics and industrial experience makes the difference.

Dr. Dirk Notheis

Founder & Managing Director

Investment Strategy

Financing Instruments

  1. Subordinated loans / Mezzanine capital:
    “Rantum Private Debt Fund I” focusses on subordinated loans and mezzanine capital. We typically invest 2-20 million EUR per transaction although we have also deployed significantly larger tickets (up to 100 million EUR) in the past together with our co-investment partners. In every investment Rantum Capital acts as interface to the Mittelstand company. The tenor of financing is 5-7 years; the interest rates typically range in the low-teens and are payable monthly or quarterly. In a blended rate perspective with lower-priced senior loans, it yields an attractive overall cost of capital for Mittelstand entrepreneurs.
  2. Equity:
    Together with our joint venture partner Cedarlake Capital we advise “Cedarlake Private Equity Fund I”, which invests common equity both in majority and qualified minority situations. The entrepreneur typically retains an equity stake and thus profits significantly from the value creation due to the stimulated growth in China and the rest of Asia. Together with committed co-investment facilities the fund regularly deploys 50-300 million EUR per transaction and focuses on enterprise values up to 1 billion EUR. The investment horizon is typically approx. 5 years.
  3. Unitranche financings:
    “Rantum Private Debt Fund I” also disburses unitranche loans covering the entire capital requirement of a company (senior and subordinated loans) in one bank-independent product. After a unitranche transaction, Rantum Capital is typically the only lender of the company. The ticket sizes range between 15 and 100 million EUR with a tenor of 5-7 years. Interest rates range usually in the high single-digit area.

Both disruption and digitalization need to be considered in each investment decision.

Marc Pahlow

Founder & Managing Director

Focus Industries

We invest preferably in industries in which our 13 industrial partners have long-term senior leadership experience and possess far reaching expertise and networks. Our current focus is therefore primarily on the following sectors:

Machine Making, Capital Goods, Technology & AutomationDr. Michael Rogowski,
Dr. Hans-Peter Sollinger
Industrials, Automotive, Aerospace & Defense, Metal-Processing and Industry 4.0Klaus Eberhardt
ChemicalsDr. Lothar Steinebach
Healthcare & PharmaDr. Karl-Ludwig Kley,
Thomas Ebeling
Retail, Consumer Goods, Food & BeverageDr. Hans-Joachim Körber
IT, Digital & MediaKarlheinz Kögel
Energy, Infrastructure & Business ServicesDr. Alfred Tacke
Financial ServicesHendrik Borggreve
Transportation, Tourism & LogisticsJoachim Hunold

Investing into the right people is the most efficient strategy to reduce risk.

Wolfgang Hartmann

Industrial Partner & Chairman of the Investment Committee Debt

Investment Criteria

Our debt investments focus on entrepreneurially and family-owned Mittelstand companies with 2-100 million EUR EBITDA. A stable cash flow profile with sufficient debt service ability is an important investment criterion. We do not invest into insolvency situations, distressed companies, start-ups or greenfield developments, but rather focus on established and profitable companies with strong market positions and further growth ambitions.

 

Our equity investments focus on companies with 5-100 million EUR EBITDA and operate business models with significant further growth potential in China and the rest of Asia which we believe to be able to realize with our deep and locally grounded networks particularly in China.

Good strategic advice is quite often worth more than capital.

Dr. Hans-Joachim Körber

Industrial Partner for Retail, Consumer Goods, Food & Beverage

Financing Situations

With our debt capital, we invest preferably in the following situations:

  • Growth investments, for example relating to the introduction of new products or technologies
  • Add-on acquisitions, for example the acquisition of smaller competitors or foreign companies in order to gain market access
  • Strengthening of the equity ratio to prepare for future growth and/or to cope with senior lender requirements
  • Refinancing of existing senior facilities, subordinated loans or publicly traded bonds
  • Acquisition financing for buy-in management teams
  • Buyout of minority equity shareholders, for example other family members or financial investors
  • Partial cash out and realization of the company value through financing of a special dividend which is distributed to the owner

 

With our equity capital, we invest preferably in the following situations:

  • Acquisition of equity shares of majority or minority owners
  • Capital increases
  • Endogenous growth situations with large market potential in China and the rest of Asia
  • Exogenous growth situations with add-on acquisition potential in China and the rest of Asia