vengrow corporate finance ag, switzerland 1 vengrow corporate finance ag switzerland funds...

VenGrow Corporate Finance AG, Switzerlandwww.vengrow.com1

VenGrow Corporate Finance AGSwitzerland

Funds investing in small- and medium sized enterprises (SME’s) and their impacts on economic growth

Presentation for the Qatari Businessman AssociationNovember 2007


VenGrow Corporate Finance AG, SwitzerlandIntroduction to our business strategyDear Entrepreneurs and Investors,VenGrow is committed to sustainable investment in and business development for small & medium sized enterprises (SME) in Europe and in the Gulf. We don’t consider the concept of “quick money”. The fact that yield and sustainability are not contradictory shows the performance of investments, which we converted for customers. And our presence with staff in all the regions we operate. We realize international SME investment funds and expansion projects with renowned business partners in London, Hamburg, the Gulf and Switzerland. We are pleased to work for you hard and systematically so that you can achieve your goals!

Sincerely yours,Andreas Bünter, Founder & CEO


Portrait Andreas BuenterFounder & CEO VenGrow

Andreas Buenter is the founder and managing partner of VenGrow Corporate Finance Ltd. He has

build VenGrow’s team focused on private equity investment and corporate finance solutions for small

and medium size enterprises (SMEs). He operates from VenGrow’s offices in Pfaeffikon, Switzerland

(nearby Zurich), Hamburg, Germany and Dubai, UAE.

Andreas has held a variety of professional and management positions in banking since 1982 (trading,

financial analysis, fund management, product development and sales management). Entrepreneurial

experience began in 1991 with the founding of a financial analysis and investment counseling

company. He built a broad base of several thousand regular customers and was responsible for more

than 6,000 research reports. After selling his company in 2000, he structured and supported M&A-

activities of a Swiss-exchange listed investment group. He was chief operating officer for a structured

equity products team and director of sales management with UBS Wealth Management Switzerland.

Andreas started his career with business vocational training in the banking sector and holds a degree

as a business economist and Swiss certified financial analyst/asset manager as well as the

international CIIA (Certified International Investment Analyst). Andreas has generated top-tier returns

on private equity investments.

Andreas BuenterFounder & CEOVenGrow

VenGrow Corporate Finance AGBahnhofstrasse 13CH 8808 Pf$ffikon SZSwitzerland

Tel: +41 58 206 08 50Fax: +41 58 206 08 99Email [email protected]

VenGrow subsidiaries:Hamburg, Dubai (from 2007)

Affiliated companies:Nobella AG, Hamm (Germany)VenGrow Private Equity Geschäftsführungs GmbHVenGrow, Dubai


Introduction Themes and Highlights

1. Why invest in funds focusing on small to medium sized enterprises (SME‘s):

a) to support economic growth b) to diversify economic power in the long term

c) to make money with a new class of investments

2. Where to access investments / which structures / the most attractive markets (early-in – highest profit)

3. How to profit as a local investor (capital gains, benefits for the local economy)


World’s richest countriesand how they create wealth

Highest GNP per capita (Sources: World Bank Development July 06 and own estimate for 07 in USD)

1. Luxembourg2. Norway3. Qatar4. Switzerland5. United States…8. Japan…11. United Kingdom


Switzerland – the 4th richest country in the world:SME’s are the foundation of economic prosperity

Exports of goods and services are main driversof economic growth and prosperity:

From total demand of CHF 705bn (Swiss GDP) exports account for CHF 255bn (36%)

40% of total Swiss exports are driven by MEM industries (MEM = Mechanical, electrical engineering, machinery)

equals to 69,841mn CHF exports in 2006 (+13.9% yoy)


Switzerland’s industrial base:SME’s dominate local economy

Company size structure in the Swiss MEM industries

4,340 318,490(Companies) (Employment)

Large-sized (250+ employees) 4.8% 35.7%

Medium-sized (50-249) 22.3% 39.1% Small-sized (10-49) 72.9% 25.2%

(MEM = Mechanical, electrical engineering, machinery)


Switzerland’s technology and power driven by R&D and expansion abroad

R&D expenditure:

The MEM industries accounted for 32% of allSwitzerland’s expenditure on R&D (2004)

Total investments: CHF 3,016mn

Swiss industry’s headcount abroad:

MEM industries account for 35.5% of all industrialpersonnel employment abroad (385,894 jobs)


How a small country has done it:World leading positions in various industries

Market position:

Switzerland has leading positions in specific products

Rank 10 overall machinery exports (worldwide)

Rank 3 Paper processing machinesRank 4 Textile machineryRank 5 Printing machinery, scalesRank 6 Machine tools, packaging machineryRank 7 Turbines, precision tools, food processingRank 10 Compressors, vacuum, plastics machineryand many others (energy distribution, etc.)

Rank 1 Wealth Management / Financial ServicesRank 1 Watches


Swiss precision, tradition and experience:The Bridge-Builder for Emerging Markets

With its state-of-the-art technologies, Swissindustry and financial services can act as a bridge-builder for many emerging markets worldwide.

Switzerland is the 4th richest country of the world – without having any natural resources.

The Gulf region should and can use the know-how and experience as a ‘role-model’ to position itself in the ‘non-commodities’ world.


What’s the opportunity for G.C.C. based investors and local economies?

How can G.C.C investors participate in SME’s in Europe / Switzerland

- to make money as an investor (IRR 25-35%) - to bring know-how and technology to the region?- to grow local economies

How can investors from the Gulf pass the following hurdles?

- a private market (family-owned businesses)- some legal hurdles (i.e. tax deals, real estate)- some cultural challenges (i.e. languages, networks)


Solutions for G.C.C. based investors

Solutions to the challenges are:

+ local experts with value enhancement skills

+ local sourcing of deal flow / access to control-stakes

+ development and execution of expansion into Gulf together with experienced export-related enterprises

+ local networks to support attractive trade sales

+ financial structuring and implementation know-how


What’s the best market investors should access today?

Business succession situations (Mid-Market Buyouts)

~ 20% of all business owners older than 61 years~ 10% of all business owners older than 70 years

~ 50% of all business owners sell their enterprise to third party due to lack of family succession

~ 500 deals annually in Switzerland with SME’s~ 4,000 deals annually in Germany, etc.

assuming only 10mn CHF value per deal = 5bn CHF deal value annually in Switzerland alone


What can the investments offer?Know-how, technology, cash flows, capital gains

1. Strong operational Cash Flows / Low leverage

2. Strong market position / technology

3. Established management with significant experience

4. Significant potential for higher operational margins

5. Sales expansion potential (i.e. G.C.C.)

6. Valuation massively below exchange-listed companies

7. Attractive exit situation within 5-8 years (trade sale) with expected IRR of 25 to 35% p.a.


What should the fund manager offer to you?

1. Local access to business owners / same language / business understanding / track record

2. Active development of enterprises

3. Risk & controlling locally and daily

4. Local representation in the Gulf to support expansion (cultural management, guide, project- leader)

5. Knows potential strategic buyer (for trade sale later)

6. Access to local banking system for leverage


Ways to access investmentsCosts to access investments

1. Single target funds with focused investments in ~5 to 10 enterprises (depending on volume)

2. Multi-manager funds with specialised teams (regional or sector focus)

3. Offshore structures / Onshore Swiss holding companies / European mutual funds

4. Closed-end or open-end structures

5. No liquidity until duration / Liquidity through listing

6. Management fee 1,5–2,0%, accrued interest 20% with hurdle rate (10%) and high-watermark


What does VenGrow offer to local investors?

1. Single target funds with focused investments in up to 10 enterprises

2. Multi-manager funds with specialised teams(industrial / financial services)

3. Offshore structures / Onshore Swiss Holding European style mutual funds / closed or open-end

4. Sharia compliant investingBuy-and-Hold or Trade-Sale strategy

5. Fund-raising and co-investment support with European and regional investors (UAE)

6. Local support from VenGrow (Dubai, a.o.) long term


What does VenGrow offer to local investors?

Access local markets of SME business successions

Pool the investments in funds / structures as needed

Enhance value (operational and financial performance)

Expand into strong emerging markets (i.e. GCC)

Buy-and-Hold or Trade-Sale to strategic investors / IPO

=

Create value for investors, local economies

Sharia compliant investment strategy


VenGrow: Current investment opportunities with local expansion potential

• Construction & Building / Water – Lighting technologies – Security and safety– Gardening– Sewage – Seawater desalination– Staff housing / Worker apartments

•Transportation– Clean diesel motors

•Technology

– Rugged computers, Hardware assembly

• Energy production and distribution– Delivery systems (flexible pipelines)


VenGrow’s business plan in the Gulf regionExecution phase

2007: Set-up of VenGrow subsidiary in Dubai

Review of market opportunities in Private Equity and Real Estate

2008: Launch of SME Fund Offering with locals

Set-up LLC in Ras el Khaimah (RAK)

Launch Real Estate Fund Offering with locals (RAK – Worker and staff housing,

land development, leisure)

Expand regional scope if and when demand is there for SME-drive (i.e. Qatar)


Contact Info

Headquarter:

VenGrow Corporate Finance AGBahnhofstrasse 13CH 8808 Pfäffikon (SZ)

Tel. +41 58 206 08 50Fax +41 58 206 08 99e-Mail: [email protected]: www.vengrow.com

Subsidiaries:Hamburg, Dubai (end 2007), Ras el Khaimah (2008)

CEO:Mr. Andreas Buenter, Founder and CEO VenGrow

vengrow corporate finance ag, switzerland 1 vengrow corporate finance ag switzerland funds...

Documents

vengrow subsidiaries

corporate finance solutions

switzerland introduction

nobella ag

andreas bnter

founder ceo slide

business development

dubai slide