Swift Capital Partners invests in private equity funds in the European buyout sector. These funds invest in established companies which are normally not listed on a public exchange and which generate positive cash flows. Funds like these generally have a life of 10 years. Mostly the buyout funds invest in 10 to 20 portfolio companies over a period of five years. The businesses are then developed for three to seven years before being sold again. So in this way the portfolios are diversified both over time and across a wide variety of sectors. This has a positive effect on the stability of the portfolio.
Swift Capital Partners’ geographic focus is on Europe, particularly the UK, Scandinavia, Benelux and German-speaking countries. Private equity has a long tradition in these countries and is accepted and established as an asset class. Swift Capital Partners prefers buyout funds without a sector specialisation, which can make the best use of the market opportunities that arise over the course of the investment period. The funds selected by Swift Capital Partners invest primarily in growth companies. We believe this is the most sustainable way of adding value for investors. Finally, Swift Capital Partners prefers funds that have consistently generated above-average returns with below-average volatility in spite of the challenging market conditions that have prevailed in recent years.
According to the industry association Invest Europe, there are around 400 buyout firms active in the European market, which raise new funds every four to five years. Within this investment universe, Swift Capital Partners makes its selections based on its experience of the market, which now stretches back over 17 years. Most European private equity funds are known to us personally; we have the necessary access to the outstanding market participants and a wide-ranging network. This enables us to make well-founded investment decisions.
Successful investments in private equity funds depend to a large degree on the individuals involved and the way they work together. Over the years we have met excellent teams in all segments of the buyout market; from small buyouts to firms specialising in mid-market, large or mega-buyouts. So we cover all these four areas when making our investments. Almost 20 years of successful investing by Swift Capital Partners have confirmed our assessment that blending market segments is a particularly attractive investment approach from a long-term risk-return perspective.