Our Investment Approach

IndEU capital is a growth capital investor in the Indian Luxury & Premium brands space. The investment strategy is structured around two components which represent the two key growth and value drivers in the industry :

BtoC : to invest in Indian emerging brands in segments like consumer & product brands, beauty & wellness, lifestyle retail, web business in the space, lifestyle retail, interior design & premium furniture.
BtoB : to invest in companies with a strong competitive advantage and a unique manufacturing know-how inside the luxury industry value chain.

Investment opportunities are considered based on the businesses’ global strategy and their growth sustainability and not only on the basis of the India-Europe cross-border strategy.

  • Investment Structure
  • Investment Parameters
  • Exit Strategy

We invest over the tenure in our portfolio in the range of €6-€8 million per company in exchange of an influential shareholding with Board representation.

We structure our investment instruments in relation to the strategic requirements of the target business. We broadly pursue the following types of investments:

  • Development capital through equity and quasi-equity instruments
  • Co-investments with other private equity firms which add specific value to an investment

Thus the targeted businesses should have the following characteristics:

  • Well-run companies but with untapped potential: sound businesses with minimum TO of €20 million, profitable and cash positive
  • A business model with clear competitive advantages which will lead the company to become a market leader
  • A sustainable business model with barriers to entry
  • Successful entrepreneur and skilled management
Indian emerging brands able to take leading position and operating on international standards represent unique acquisition opportunities for both Indian and Western buyers seeking for market share in India.

A clear visibility on the exit routes is one of the determinant conditions for the investments:

  • Indian strategic buyers: local groups targeting leadership positions
  • EU and US strategic buyers: international luxury groups wanting to own a leading brand or a specific know-how in India
  • IPO depending to the market conditions
  • Sale to another PE fund which support another stage of the development

Our Process

IndEU Capital follows a rigorous and structured process for screening investment proposals. The entire process from start to disbursement of funds takes 4 - 6 months.

IndEU Capital investment process consists of four stages:
  • Due Diligence
  • Initial Screening
  • Detailed Evaluation
  • Legal Agreements & Closing

Evaluation Criteria :

Detailed financial, legal and technical due diligence conducted by third party service providers
Reconfirmation of the investment thesis and business plan
Discussion on Post due diligence findings, if any

Timeframe :

6 - 8 weeks
Timelines depend largely on preparedness of the company to provide relevant information. IndEU Capital leaves no stone un-turned to achieve closure at the earliest.

Evaluation Criteria :

Adheres to overall IndEU Capital investment strategy and criteria
IndEU Capital's view on the industry and the company’s competitive position

Timeframe :

1 - 2 weeks

Evaluation Criteria :

  • Validation of business plan
    • Industry outlook
    • Sustainability of business model
    • Capabilities relative to peer group
    • Achievability of future projections
    • Funding required to achieve business plan
  • Alignment of interest between entrepreneur and IndEU Capital
    • Common Vision and Values Approach to business building
    • Investment, structure, valuation and exit options
  • Agreement on business plan, valuation, funding and other key terms
  • Execution of term sheet

Timeframe :

6 - 8 weeks

Steps :

  • Preparation of Legal documentation
  • Execution of Final agreements
  • Completion of Conditions precedent Disbursement of Funds - Closing

Timeframe :

4 - 6 weeks