DH has a highly selective investment process to identify and acquire controlling equity stakes in market-leading businesses with strong growth prospects. These businesses typically have enterprise values between €200m – €600m and are headquartered in Northern Europe.
DH’s investment strategy is to only invest in businesses where it can add value to the investment. This is a key pillar of how DH operates, with bespoke value creation plans put in place for each and every investment, and focus given to the make-up and potential impact of this right from the time the team starts evaluating a potential investment.
This is characterised by the following distinguishing characteristics:
- Targeting family-owned businesses, corporate carve-outs and portfolio companies of smaller private equity funds;
- Controlling stakes;
- Strategy focused on earnings growth;
- Value enhancement;
- Conservative use of leverage; and
- Responsible investing.
Deal selection criteria
DH continues to pursue the same highly selective investment policy, focusing on businesses that display most or all of the following characteristics:
- Market-leading positions with a competitive advantage based on strong branding, product, geographic or cost leadership and barriers to entry;
- Potential to grow the value of the business within the investment period through active ownership;
- Predictable, stable cash flows;
- Strong management teams willing to invest alongside the Fund;
- Addressing growing and often underserved markets through a compelling strategy;
- Established products or operations, which are resilient to economic and market cycles;
- End markets with broad geographic footprints, including exposure to high growth or emerging markets; and
- Enterprise value between €200m and €600m.