HONG KONG, Jan. 27, 2020 /PRNewswire/ -- Bruckhaus Quist, a global investment management firm that offers actively managed, global investment solutions to clients around the world, including pension funds, corporations, charities and individuals, announced today a new strategy designed to enlarge the spectrum of opportunity in the lower middle market Mergers & Acquisitions (M&A) territory, where deals are valued at between $20 and $50 million. The lower middle market provides one of the best ecosystems for private equity investors to create returns.
Bruckhaus Quist regards the entire middle market as being defined by 3 important factors:
- More companies to invest in;
- Greater opportunities to change companies; and
- Lower valuations and barriers to entry.
These favorable attributes have made middle-market companies the most sought-after assets, which, over time, has made it difficult for all private equity firms to generate high returns for their clients. Therefore, Bruckhaus Quist is applying a new strategy in the lower middle market M&A territory, looking to increase investor's returns in the medium- to long-term.
"The competitive nature of even the lower middle market is intense," says Edward Tam, Managing Director of Private Investing Division at Bruckhaus Quist, a middle-market expert with almost 30 years of experience. "The sell processes are compressed, offering limited exposure to the seller and management, and multiple teams spend big bucks to distinguish themselves in a race to a quick close. We are trying to escape some of that by moving down to lower capital requirements."
The Honk Kong based firm is looking to make control investments in companies with less than $5 million of Ebitda.
"We see that there is an inflection point somewhere in the $5 million to $6 million Ebitda range," says Tam. "Below that, the economics simply don't work for us to run a full auction process and there is less support from our investors. Yes, the risks are higher with less infrastructure and management depth, however, we've performed there already and we enjoy rolling up our sleeves."
The value of any transaction Bruckhaus Quist will conduct within this new strategy will not exceed $50 million. Limited partners are expected to be a typical mix of pension funds, endowments and family offices.
About Bruckhaus Quist (https://bruckhaus-quist.com/)
Bruckhaus Quist is a Hong Kong-based, global investment management firm. The company offers actively managed, global investment solutions to clients around the world, including pension funds, corporations, charities and individuals. The firm has a global investment experience. Collectively, Bruckhaus Quist's Board has over 185 years of investing and operating experience in financial services. The team's experience and extensive network of industry contacts enables us to provide significant business development assistance to our portfolio companies. Bruckhaus Quist is committed to constantly reappraising and further developing the business model to ensure the company remains assured and confident in an ever-changing landscape.
Contact:
Joachim Jarosz
+85258010243
233035@email4pr.com
View original content:http://www.prnewswire.com/news-releases/bruckhaus-quist-announces-new-strategy-for-lower-middle-market-ma-opportunities-300993563.html
SOURCE Bruckhaus Quist
