
We target three sectors that fit with the partners' own professional experiences :
Undervalued companies with proven, proprietary technologies potentially addressing rapidly expanding global markets,
Service Companies with external or organic growth drivers,
'Traditional' companies where we believe applying technological innovation can create new product lines and/or better-cost optimization.
Primary targets are SMEs with EUR 2 to 20 M annual revenue operating at or near breakeven.
The Fund will proceed on an investment only when we believe the target's top management is top notch in its field, has a very significant stake in the company and is eager to monetize its equity position within a 3 to 5 years time frame.
We aim at investing at the "inflexion point" of the life of the company, typically the moment when the target needs help and capital to accelerate its growth and further scale up its business.
Typical growth acceleration catalysts can be internal or external and include for example acquisitions, new product introductions, geographical expansion, new distribution channels or capacity expansion. Besides providing the required growth capital, NexTFund's value-added is in assisting the target's top managers in accelerating growth, improving the company's profitability and identifying and managing a clear path to liquidity.
NexTFund II deliberately targets a niche somewhat neglected by established, traditional venture capital firms (including the FCPI) or LBO players. It focuses on SMEs lacking the explosive growth potential or the high profitability required to attract traditional players. It assists these targeted SMEs in positioning themselves over time as attractive acquisition targets or LBO candidates thru a rejuvenated growth potential, a more attractive profitability and a better business model.
NexTFund II is by design value-oriented and based on "below market" entry valuations.
The Fund's geographical focus is France and Europe.