Arcana Capital advises its clients with respect to direct (lead and co-investments) and indirect (fund investments) private equity strategies.
Whereas private equity is a cornerstone in any diversified strategic asset allocation, the question how to ensure access to independent private equity expertise is particularly relevant for family offices, foundations and private investment holdings.
We offer our clients an outsourced process to implement their specific private equity strategy. Our range of services is tailor-made to meet actual client needs.
With more than 30 years of combined management expertise in various blue chip private equity firms, international family offices and operating businesses, Arcana Capital supports its clients along all stages of the private equity value chain. Our clients comprise family offices, Private Equity Funds, foundations and private investment holdings.
We advise our clients independently of own products and thus free of potential conflicts of interest.
We utilize proven tools and established processes for the sustainable development of our clients’ private equity portfolios.
We have many years of relevant work experience in executive management functions for international private equity firms and some of the largest family offices in Europe. As a result, we are intimately familiar with the manager and principal side of the transaction and are thus able to offer our clients comprehensive advice.
We provide our clients access to high calibre service providers specialized in financial, commercial, legal and tax matters with a particular focus on the German-speaking regions and the UK.
Core Service
As Arcana Capital we advise our clients with respect to the principal private equity investment strategies:
Evaluation, execution, management and sale of direct investments (lead und co-investments)
Selection of private equity funds/managers as part of a rigorous selection process
Structuring, acquisition, management and sale of complex investment portfolios
The Team has significant experience in investment management, advisory and business operations.
Robert Stein
Founder and Managing Partner Robert Stein has worked for various private equity firms in Europe and Germany since 1996.
In 2013, Robert founded the firm CAPNET, which focused on advising family offices in their private equity efforts and structuring the buyout of complex private equity portfolios. In this capacity, Robert worked as Senior Advisor and member of the investment committee for Rianta Capital, a family office in London. The operations of CAPNET were merged into Arcana Capital AG in summer 2016.
After working for 3i from 1996 until 2006 – in his last role as partner and member of the management board in Germany – Robert was Managing Partner of the German Mittelstands fund Argantis from 2007-2013 where he was responsible for a number of successful transactions.
During his career, Robert oversaw the development of a number of investment teams and drove the strategic direction of business units and private equity funds.
Robert started his career in the audit and restructuring divisions at Arthur Andersen from 1991-1996.
Robert Stein holds a master degree from the University of Mannheim and Southbank University in London.
Advisory Board
Madeleine Jahr
Madeleine Jahr is Managing Director and Head Family Office advisory at GCA Altium, a leading global investment bank serving growth companies and leading corporations with 14 offices in 10 countries worldwide.
In parallel, Madeleine is involved in the asset allocation of a family-owned investment holding and co-founded a leading deep-frozen bakery goods company in Eastern Europe. She started her career at Ernst & Young, Zurich.
Madeleine holds a master degree (lic. Oec.) in economics and finance from the University of St. Gallen, Switzerland.
Michael Staab
Michael Staab is Managing Partner at FOSTER Institute for Family Offices in Frankfurt and Zurich and has extensive industrial management and consulting experience: between 1989 and 2003, Michael held various management functions for large corporates (BASF AG) and strategic management firms before starting his own enterprise in 2004.
Through FOSTER institute, Michael has established an excellent relationship network in German-speaking Europe among family owned businesses and family offices, respectively.
Dr. Stephan Wessel
Dr. Stephan Wessel is CIO Private Markets at Bauer Family Office. He was co-founder of Arcana Capital and previously led the private equity efforts at two European single family offices.
From 2013 until summer 2016, Stephan led the private equity team at Rianta Capital, a single family office in London where he managed the direct (lead and co-investments) and co-managed the indirect (funds) investment strategies.
Before earning his doctorate in economic science, from 2008 until 2011, Stephan established and developed the direct investment portfolio at Gaydoul Group, a single family office in Zurich, during the years 2009-2011 as head of the direct investment division.
Stephan started his career in 2004 at UBS Investment Bank working in their M&A division.
Stephan studied at Samford University, Wilhelms Universität Münster and Otto Beisheim School of Management and holds a bachelor degree in finance (B.Sc.), a master of laws (LL.M.) and doctorate in business (Dr. rer. pol.).
Arcana Capital is
your external private
equity advisor
Services
Semi-institutional (e.g. family offices, foundations) and institutional (e.g. insurance and pension firms) investors are not only interested in private equity during the current low interest environment but also for reasons of diversification, low overall correlation with public markets and return optimization.
However, in particular semi-institutional clients often deliberate how to adequately generate exposure to private equity assets as part of their diversified multi asset strategy. The complexity of the asset class combined with at times insufficient internal proficiency and high external costs exacerbate the efficient access to private equity investments for many wealth owners. Moreover, the total asset base may limit the room for manoeuvre as the implicit allocation to private equity may not allow the sustainable development of adequate in-house resources.
Hence, we offer our clients an outsourced process to implement their specific private equity strategy. We support our clients with an experienced senior team of private equity specialists.
Our clients benefit from a shared cost base as Arcana Capital advises a number of families and foundations. As such, we are able to pass on potential cost savings to our clients, in particular with respect to relatively standardized processes that benefit from economies of scale, such as manager selection, deal flow analysis and reporting solutions.
At times, the amount of capital available for private equity investments may limit the access to attractive investment opportunities. By pooling our clients’ investment funds, we are able to furnish access to direct investment opportunities with a more balanced risk-return profile (i.e. later stage investments) and facilitate investment into sought-after private equity funds.
Many of our clients particularly appreciate the trusted exchange to other families, which we furnish upon request most discretely through our relationship network.
As Arcana Capital we advise our clients with respect to the following principal investment strategies:
Besides indirect investments via funds, our clients also invest directly into companies. Many client families and foundations seek to retain indirect influence over the funds invested and appreciate the opportunity to engage in entrepreneurial activity.
Direct investments are associated with significant due diligence and control costs. Given the substantial financial and human investment required, the resulting level of diversification of the investment portfolio may be relatively low, which is why thorough diligence, careful structuring and continuous monitoring of the direct investment portfolio are essential.
We support our clients, inter alia, through:
- Targeted sourcing and assessment of direct investment opportunities in relevant markets on behalf of our clients
- Management of the entire investment process, in particular with respect to due diligence and negotiation of the investor docs
- Continuous and focused monitoring and management of the direct investment portfolio, in particular with respect to supervisory board mandates
- Formulation and implementation of value-enhancing strategies, development of management teams as well as restructuring and refinancing of companies
- Preparation of investment papers/recommendations and implementation management
As with co-investments several investors are investing in a target company, investment capital and risks are spread across several parties. Accordingly, co-investments offer investors a higher degree of diversification over lead investments – assuming the same total investment capital. Moreover, co-investments afford wealth owners the possibility of entrepreneurial activity and indirect influence. As such, co-investments serve as an attractive complement to fund and lead investment strategies.
Equivalent to lead investments, detailed due diligence of the target company is paramount. In addition, the lead investor and its track record need to be assessed carefully – in this respect, the due diligence process is comparable to fund investments when assessing the manager team. In contrast to fund investments, however, skilful and proven contract drafting afford our clients the opportunity for sustainable influence. Whilst governance issues may frequently be the cause of failed co-investments, we advise our clients how to maximize their level of control. In addition, we gladly take over the continuous monitoring and controlling of our clients´ co-investments.
Whilst the structuring and takeover of entire investment portfolios builds upon the tool set of direct lead and co-investments, this very complex form of investing requires specific know-how and experience.
Compared to actively managed equity funds, private equity funds show different liquidity and yield profiles. Capital invested in private equity funds is tied up for many years before liquidity may be returned to limited partners. Investments in private equity are generally associated with more risk, which is compensated through higher returns. For these two reasons, the careful selection of private equity managers is paramount.
A successful manager selection requires a systematic selection process and in-depth knowledge of the economic, operational and legal criteria and risks. Arcana Capital has many years of practical experience, the team having both, led international private equity as well as invested into private equity funds on behalf of institutional clients. As such, we offer clients the unique perspective of having negotiated on both sides of the table.
For our clients, we have developed state-of-the-art fund reporting systems and processes to ensure high levels of transparency throughout the investment process. Furthermore, we represent the interests of our clients vis-à-vis fund management as well as in investment committees and on LP boards.
As Arcana Capital we advise our customers in specific situations with their existing investment portfolio:
We supported owners and companies on numerous occasions as active partners in a wide range of situations:
- Assessment and definition of strategic direction, change management
- Management development and changes
- Fundraising and capital restructuring (equity and debt)
- Turnaround management
- Support in selling a business or shareholding
- Managing shareholder conflicts
Overview of current
and former projects
Track Record
Below is an overview of current and former projects that the team of Arcana Capital led in the past and is currently engaged with, respectively.
- Development of an investment holding comprising 4 core investment companies for a European family office
- Advising a European family office on the sale of and re-investment into a British fast retailing chain with more than €2bn transaction value
- Co-Investment alongside an institutional turnaround investor into a German retail chain with more than 1‘800 stores (family office)
- Development and successful exit of a fitness group in Spain and South Africa (family office)
- Restructuring and successful sale of an internationally established sports group with operations in Germany, Spain and China (family office)
- Private equity fund investments (family office)
- Growth investment on behalf of a European family office into the leading European e-tailer of fabrics
- Growth investment (Series A) on behalf of a European single family office into the global leader for audience data (family office)
- Growth investment and successful exit (>3x) on behalf of a family office into a group of private shopping clubs
- MBO of a frozen food producer with c. €30m sales. Add-on acquisition of a supplier, expansion of the management team, optimization of internal processes and subsequent sale to a private equity fund
- MBO of a Swiss consumer goods company. Expansion of the management team, strategic development and financial stabilization during economic recession. Subsequent successful sale to a family holding
- MBI, minority investment into a services company, add-on acquisitions of >10 competitors, expansion of the management team and successful sale to the incumbent management team (c. €100m sales)
- €200m MBO alongside another co-investor in the automotive supply industry. Expansion of the management team, implementation of a high-calibre industry advisory board, process optimization, relocation of production sites and entry into the Asian markets. Successful sale to a financial investor
- Growth investment into a software company over three subsequent financing rounds. €10m investment in addition to acquisition of further co-investment. 10-fold increase of revenues during time of investment. Successful exit through IPO
- Restructuring and refinancing of a services company as a result of market changes
- Run-off of an investment portfolio with >10 companies on behalf of a European family office
- Takeover of a U.S. competitor of a portfolio company as part of an asset deal
- Assessment of an established private equity fund portfolio and recommendations for the future investment strategy (family office)
- Restructuring of a private equity portfolio comprising lead, co- and fund investments (including divestments and new investments)
- Successful run-off of a private equity portfolio with >€250m sales; realization of target returns of the limited partners after complete sale of the portfolio
- Restructuring of a technology portfolio with more than 60 companies
- Advisory of a family holding on the optimization of their investment portfolio, specifically the sale of existing assets and the investment into new companies
- Advisory of a technology company as part of a structured sales process to a competitor. Support throughout all stages of the sales process in cooperation with a specialized consulting firm from our proprietary network
- Definition of the private equity investment policy, comprising lead, co- and fund investments for a European family office
Based on your specific needs, we look forward to building a dialogue with you and helping you reach your investment objectives.
How to reach us
Contact
Imprint
Arcana Capital GmbH
Hildeboldplatz 15-17
D – 50672 Köln
info@arcana-capital.de
+49 221 167 935 2-0
Verwaltungsrat: Robert Stein
Data protection © 2018 Arcana Capital GmbH