Record year for equity capital partner HANNOVER Finanz
- 2021 financial statement: Five new corporate investments and highest investment ratio in ten years
- Group result of over 100 million euros
Equity capital partner HANNOVER Finanz is looking back on a record year: the investment ratio in 2021 was the highest in ten years, with a return on investment of 30 percent. The investment volume has increased significantly, doubling on a five-year average since 2016. Investment income increased by around 43 percent compared to the previous year.
The broad positioning of the portfolio in the German SME sector and cooperation with companies from all industries has proven its worth in the past two business years, marked as they were by the coronavirus pandemic. The portfolio has remained stable despite temporary market upheavals. As a result of two divestments and low risk provisioning, an EBT of more than € 100 m was achieved in 2021. Currently, HANNOVER Finanz manages more than 700 million euros of capital invested in medium-sized enterprises. Goetz Hertz-Eichenrode, CEO of HANNOVER Finanz, stated at the annual press conference in Hanover this Tuesday: “Despite a highly volatile and difficult to predict market environment, HANNOVER Finanz was able to close a record year. For us, this proved once again that good strategic business partnerships and resilient entrepreneurial know-how pay off with tangible results.”
Five new corporate investments
HANNOVER Finanz invested in five new medium-sized companies in 2021, three in the context of succession planning and two in growth financing. In total, HANNOVER Finanz invested over € 114 million.
- Dental Direkt GmbH, Spenge (succession) – Europe’s leading manufacturer of ceramic milling blanks in the dental industry with its own digital milling centre
- Löwenstark Digital Group GmbH, Braunschweig (succession) – online marketing agency
- Bühr Group, Gerlingen (growth) – technical building equipment
- First Climate AG, Bad Vilbel (growth) – CO2 management and climate neutrality solutions for companies
- Hübers Verfahrenstechnik Maschinenbau GmbH, Bocholt (succession) – hidden champion in the field of potting/infusion systems as well as research and development for technologies used, for example, in e-mobility and wind turbines
With these new additions, HANNOVER Finanz’s portfolio has become both younger and more innovative, and also more sustainable and fit for the future.
Two successful divestments
After around eleven years of cooperation, the Biesterfeld family has bought back the shares of almost 30 percent held by HANNOVER Finanz. The owner family and HANNOVER Finanz have successfully built up and expanded the international growth of the plastics and chemicals distributor Biesterfeld Group (Hamburg). HANNOVER Finanz director Jürgen von Wendorff explains: “The Biesterfeld Group is now once again wholly owned by the family. With our commitment, we accompanied a traditional Hamburg family business in its long-term growth until the family bought back its shares as agreed. A successful business partnership for both parties!”
Following completion of succession arrangements and restructuring as a management-led company, the shares in the controlling software developer Corporate Planning AG (Hamburg) were also sold. Corporate Planning now belongs to the proAlpha Group, one of the leading providers of ERP software for medium-sized businesses.
The two transactions resulted in a capital gain of more than € 100 m for HANNOVER Finanz. At the same time, they provided a record result for the investors.
As of 31 December 2021, the portfolio of the HANNOVER Finanz Group consists of around 35 working companies. In total, the portfolio companies generated sales of € 4.4 bn and employed 20,000 people in the financial year.
Stable portfolio despite global crises
The coronavirus pandemic affected HANNOVER Finanz’s portfolio companies in very different ways. Some companies were hit harder; others were able to continue their growth course undiminished, as was the case with the chemicals distributor OQEMA of Mönchengladbach, the Löwenstark Digital Group from Braunschweig and the Austrian bicycle manufacturer Simplon. Thanks to the mix of industries, HANNOVER Finanz’s portfolio has remained stable despite the difficult market situation.
The invasion and war in Ukraine has so far only had an insignificant and isolated impact on the portfolio. The portfolio companies have only limited exposure to Ukrainian markets if at all. Another important factor contributing to stability is the stronger orientation of the portfolio towards more production-independent business models through the new acquisitions. As a result, HANNOVER Finanz expects to be less exposed to most of the current macroeconomic risk factors.
Outlook: Stronger focus on technology and growth sectors
Further additions to the portfolio are expected in 2022. FINVIA is the first newcomer of the year. The young financial technology company offers multi-family office services based on a digital platform developed in-house, and already manages assets of more than four billion euros. The investment in FINVIA continues HANNOVER Finanz’s development towards a younger and more digital portfolio.
HANNOVER Finanz remains on course for growth and has already secured notable capital commitments from investors. Combined with its own free investment capital, HANNOVER Finanz has over € 200 m to continue investing in German SMEs and family businesses. The primary reasons for investment remain succession planning and growth financing. Strategically, HANNOVER Finanz will increasingly focus on companies in the tech sector and medium sized companies with digitally oriented business models.
Dr Catrin Kuhlmann
HANNOVER Finanz Corporate Communications
Mobile +49 (0)151 750 137 54
About the HANNOVER Finanz Group
HANNOVER Finanz, founded in 1979, has more than 40 years of experience as an equity capital partner for medium sized enterprises. The private equity house based in Hanover and with an office in Vienna was one of the first venture capitalists in the German-speaking region. It is a second generation owner-managed investment company. Well-known businesses such as Fielmann, Rossmann and AIXTRON have achieved their growth with equity capital from HANNOVER Finanz and have taken advantage of the entrepreneurial support provided. Since its foundation, the equity capital partner for medium sized companies has completed over 250 projects and invested more than two billion euros. The reasons for investment are mainly to finance growth and corporate succession in sound medium sized businesses with annual sales of at least 20 million euros. The HANNOVER Finanz Group is one of the few private equity houses in Germany to take on minority as well as majority shareholdings. The portfolio currently comprises around 35 companies.