A combination of solid financial analytics and industrial experience makes the difference.
Dr. Dirk Notheis
Founder & Managing Director
- Subordinated loans / Mezzanine capital:
“Rantum Private Debt Fund I and II” focus on direct lending with subordinated loans and mezzanine capital solutions. We typically invest 5-30 million EUR per transaction although we have also deployed significantly larger tickets (up to 50 million EUR and more) in the past together with co-investment partners and LPs of our funds. Rantum Capital acts as direct interface to the Mittelstand company in any of its investments. The average tenor of financing is 5-7 years; the interest rates typically range in the low-teens depending on the credit quality of the borrower and are payable monthly or quarterly. PIK components can also be included in structuring our loans. We usually lend in coordination with a provider of senior debt, preferably commercial banks. In a blended interest rate perspective together with the lower-priced senior bank loans, the rates are highly attractive for Mittelstand entrepreneurs.
Together with support from our Chinese Partner Yi Bao, Chairman and Founder of Cedarlake Capital, we invest in common equity with a focus on majority / control situations. We typically prefer to keep the selling entrepreneur for cultural reasons retaining an equity stake in the portfolio company and to later take a second significant profit from the value creation measures we implement as well as from the generated growth in China and Asia. The fund regularly deploys 50-100 million EUR per transaction and focuses on enterprise values of up to app. 0,5 billion EUR. The investment horizon is typically approx. 5 years.
Both disruption and digitalization need to be considered in each investment decision.
Founder & Managing Director
We invest preferably in industries in which our 14 Industrial Partners and co-shareholders have a long-term senior leadership experience and own far reaching industrial and technological expertise as well as networks. Therefore our current focus is primarily on the following sectors:
|Machine Making, Capital Goods, Technology & Automation||Dr. Michael Rogowski,
Dr. Hans-Peter Sollinger
|Industrials, Automotive, Aerospace & Defense, Metal-Processing and Industry 4.0||Klaus Eberhardt|
|Chemicals||Dr. Lothar Steinebach|
|Healthcare & Pharma||Dr. Karl-Ludwig Kley,
|Retail, Consumer Goods, Food & Beverage||Dr. Hans-Joachim Körber|
|IT, Digital & Media||Karlheinz Kögel|
|Energy, Infrastructure & Business Services||Dr. Alfred Tacke|
|Financial Services||Hendrik Borggreve|
|Tourism & Aviation||Joachim Hunold|
|Logistik, Services & Human Resources||Dr. Frank-Jürgen Weise|
Investing into the right people is the most efficient strategy to reduce risk.
Industrial Partner & Chairman of the Investment Committee Debt
Our debt investments focus on entrepreneurially and family-owned Mittelstand companies with 2-100 million EUR EBITDA. Stable cash flow profile with sufficient debt service ability are 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 a min. of 5 million EUR EBITDA and business models that show significant further unexploited growth potential in China and the rest of Asia. We believe to be able to realize superior growth in China based on our partners’ unique networks in China and Asia. The typical equity investment range from 30-100 milllion EUR.
Good strategic advice is quite often worth more than capital.
Dr. Hans-Joachim Körber
Industrial Partner for Retail, Consumer Goods, Food & Beverage
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 owners
- Capital increases
- Management Buy Outs and Management Buy Ins
- Succession arrangements in family-owned businesses
- 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