Thomas Durlach

LRP Capital is a private equity investment manager focused on the German Mittelstand. The firm invests primarily in Germany, as well as in German-speaking countries. They invest across industries with a preference for established sectors with growth prospects, mature sectors with consolidation potential, and subcontracting or engineering with customers in growth sectors. They avoid cyclical markets and they do not invest in turnaround or early-stage situations. LRP Capital invests in established medium-sized companies in corporate succession situations, seeking growth financing or looking into structural reorganization. They target companies with more than EUR 20 million in turnover and a track record of sustainable profitability with at least EUR 3 to 4 million in EBIT. The firm invests at least EUR 5 million in mezzanine financing when acquiring minority stakes, and at least EUR 20 million in direct equity for majority interests. They may also invest in the form of silent participations or subordinated loans such as shareholder loans. They participate in strategic decisions without getting involved in day-to-day operations. The firm invests for the long term without a predefined exit horizon. Their investment criteria include a qualified management team set on becoming a significant shareholder, an understandable business model, significant value creation potential through organic and external growth prospects as well as prospective cost reduction, a solid market position which can be built up and a unique selling proposition.