Chequers Capital is a pioneer in investing in mid-caps. The company was established by the Charterhouse bank from the UK in 1972.
“Charterhouse was a trailblazer for capital development in Europe and wanted to develop the French market,” President and CEO Denis Metzger describes the origins of Chequers Capital. “In the following years, Charterhouse changed ownership several times. In 2000, Charterhouse spun off its investment division and from then on has been trading under the name of Chequers Capital.”
Since its foundation over 40 years ago, Chequers Capital has invested in more than 300 companies. Today, the successful private equity firm has branch offices in Milan and Munich and 35 employees, including 20 investment specialists. “Our staff is multilingual and has different cultural backgrounds,” says Mr. Metzger.
Chequers Capital issues investment funds for institutional investors from across Europe and also from America: banks, insurance groups, pension funds and other financial services providers. The latest fund issued by the private equity firm had an issuing volume of 850 million EUR.
Chequers Capital invests in mid-caps that are not publicly traded from a wide variety of industrial sectors. “The main selection criteria are growth potential, profitability and positive cash flow,” explains Mr. Metzger. Potential investment situations include management buyouts, equity strengthening, restructuring of share-ownership ratios, consolidations, spin-offs, expansion of international activities and acquisitions.
“The only scenario we are not engaged in is start-ups,” states Mr. Metzger. Chequers Capital invests in firms from the whole of Europe, with individual investments varying between 50 and 100 million EUR.
“Today’s stock markets are very volatile,” explains Mr. Metzger. “This is benefiting our business model as we are in touch directly with the companies we invest in and can provide our corporate management with in-depth expertise. Our mission is to create value together. We see all investments not only as financial vehicles but as partnerships aimed at mutual benefit for all parties involved.”
Since 1993, Chequers Capital has completed 100 investments, including 99 with a positive result. “Our internal rate of return is above 25% annually,” states Mr. Metzger. Chequers Capital is determined to continue its successful investment strategy by focusing on companies with promising growth positions in digitalization and the health sector. “People are getting older and older,” says Mr. Metzger. “This is why services for senior citizens have great potential.”