Investment Criteria

Within the European leveraged buyout debt arena Avoca Capital focuses on investments with the following characteristics:

• Large scale – revenues in excess of €500m and EBITDA in excess of €50m
• Market leading positions – number 1 or 2 in their industry
• Strong financial metrics – high adjusted EBITDA (EBITDA less Maintenance Capex) margins and high returns on invested capital
• Stable, predictable industry profile – low levels of cyclicality, limited technology and substitution risk
• Strong management team – Experience, track record and incentivisation are key

We invest predominantly in secured debt (Senior / Second Lien and Mezzanine) in companies meeting the above criteria where we feel that there is substantial headroom between the value of the company’s debt and its Enterprise Value. Enterprise Value is assessed, from a thorough analysis of the business, using detailed cashflow and sensitivity modelling and valuation metrics derived from Avoca’s proprietary deal database, which contains information on over 700 historic European leveraged buyout transactions over the past 10 years.

We are currently invested in approximately 165 different European companies across 15 countries and over 30 industry sectors

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