Driving sustainable growth: A symbiosis of private equity and venture building

"The combination of private equity and venture building creates a powerful synergy that goes beyond mere capital returns. It opens new avenues for innovation and sustainable growth". (Sebastian Esser, Partner)

Venture Building as an Essential Strategy for the Future of PEs

In an era characterized by rapid innovation and the drive for growth, Private Equity (PE) and Venture Building are in the spotlight, not only to move companies forward, but to take them to the pinnacle of success. Hand in hand, at the intersection of capital and innovation, a perfect interplay is created for sustainable growth, rapid return on investment (ROI) and sustainable multiples - Venture Building and PE: the decisive step into the future.

Naturally Aligned Interests

There is no doubt that PE firms and venture builders have similar goals. Both focus on business models that promise high internal returns and have a comparable risk profile due to their focus on SMEs. When investing in mid-market companies, PEs are looking for a quick ROI and sustainable growth with multiples in the range of 1.5x to 3x. This is in line with the objectives of a Venture Builder, who is also looking for long-term success and growth, and differs from the short-term focus on multiples of 10x that is typical of venture capital. Thus, venture builders and PE firms not only share similar goals, but also the same DNA.

Complementary Competencies for Quick ROI and Attractive Multiples

The strength of this partnership lies in its complementarity. PE firms provide the foundation-financial resources, strategic foresight, and a broad network to leverage synergies. Corporate venture builders bring innovation, agility and improved operational excellence. Private equity firms specialize in strengthening the status quo and achieving significant efficiency gains through targeted optimization at the EBIT level. At Bridgemaker, we focus on building new business models that create significant value through innovative know-how and rapid implementation. This combination allows us to respond quickly to market changes without losing sight of the long-term vision.

Achieving Portfolio Success with Digital Venture Building

The combination of Venture Building and Private Equity creates more than just a partnership; it defines a new, sustainable strategy for growth and innovation. This synergy not only increases the efficiency of value creation, but also expands the business opportunities of portfolio companies through an advanced, digital approach. It opens access to new customer segments, optimizes processes and unlocks digital potential. For PE professionals, this is a unique opportunity to significantly improve the performance of their portfolios while ensuring sustainable growth - a critical advantage when financing SMEs.

Knowing What the Future Looks Like Even Before Acquisition

By involving Bridgemaker early and actively in the acquisition phase, PE firms can focus on their core financial and strategic competencies. Bridgemaker provides a forward-looking view that goes beyond the status quo during the acquisition process. Acquisition targets can be jointly evaluated and the value creation potential more precisely defined. The execution is then managed and executed. Learn more about this approach in our next blog post on Future Proof Due Diligence.