WAD Capital: Bridging the Generational Gap in European SMEs
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WAD Capital, a Belgian private equity fund, is gaining momentum as it focuses on addressing the significant demographic challenge facing European small and medium-sized enterprises (SMEs). With nearly half of European SME leaders over 60, finding suitable successors is critical for business continuity and growth.
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The Mission: Finding the Right Leaders for the Right Businesses
Launched two years ago, WAD Capital is building a fund of €100 million. The fund's core principle is to finance and support experienced CEOs in their search for and acquisition of an SME that needs revitalization or is going through a succession process.
Christopher Tournis Gamble, a Managing Partner at WAD Capital, explains their approach: "We marry the talent of a CEO looking to take over a company with a company seeking a successor".
Identifying Opportunities
The demographic challenge in Europe creates a strong pipeline for this type of investment:
There are approximately 24 million companies in Europe.
Of these, 450,000 companies are looking for a takeover.
Crucially, one-third of these companies fail to find a successor.
WAD Capital uses technology, including AI, to help its CEOs scout the market for potential opportunities. The fund is supported by major Belgian and Dutch families.
Case Study: Mignone SA
The video highlights a successful partnership with Mignone SA, a construction company.
When the founder passed away, Vincenzo Mignone, the commercial director, wished to take the reins, but a full family takeover was not feasible.
He was contacted by a WAD Capital CEO who offered the opportunity to partner, ensuring the company's long-term sustainability.
The new CEO, Guy-Louis de la Vingne, emphasized that the partnership was a result of a methodical process, including a defined investment thesis, and ultimately, a successful human discussion between him and Vincenzo Mignone.
Strategic Support for Growth
WAD Capital's model is not just about funding; it's about providing the necessary expertise. The CEOs who partner with WAD Capital also benefit from the support of experts with complementary skills and profiles. This complementary support is vital for ensuring the target companies maintain strong growth and innovation.
WAD Capital has already completed three acquisitions, marking its initial phase of growth:
Two acquisitions are in Hainaut (Hainaut in French, referred to as "le HNO" in the video).
One acquisition is in Walloon Brabant ("le Brabant Wallon").
