For Subscribers

Get the complete article now!

This interview is a small excerpt from a comprehensive interview published in The Wall Street Transcript as part of the Consumer Sector, available at (212/952-7433) or http://www.twst.com/sectors/financ_servi.html

TWST: Can you begin with a brief overview and historical sketch of the company?

Mr. Boogmans: First of all, we are an investment company, so what we do is invest in companies. We are not a holding company, but an investment company, which means that our profit is made by making capital gains on shares that we sell. A holding company mostly lives by receiving dividends. In our case the dividends received make up only about 5% of our net profit, so it's really minor. What we are really targeting is to make capital gains on the shares that we buy and sell. We are a private equity player, which means that we almost exclusively invest in private companies and not listed companies. I think that is a very important element and also the third way for describing GIMV. We are a listed company that is not structured as a limited partnership. As such we are a kind of evergreen fund.

TWST: You focus exclusively on private equity. What advantage do you believe a narrow focus brings?

Mr. Boogmans: Well I think that you have different options to play. What we would like to demonstrate to observers is that we are really a private equity player. This implies a certain turnaround of your portfolio but also the necessity to focus on three elements. First of all we look after the best investment opportunities amongst private companies. Secondly, when our stake in a private company is big enough, we claim a representative in the board of directors. By claiming a board seat, we try to leverage our expertise skills, in order to create a maximum of added value for the companies in which we invest. This is a completely different strategy from traditional holding companies that often act as a very passive investor. Because the management-team is one of the elements that we are very careful about in the due diligence process, we avoid playing a role in the day-to-day management once we've invested. By doing so, and this is the third element, we can not only create shareholder value, but of course also capital gains that are essential for a company like GIMV.

TWST: Are there any recent investments in your portfolio that you would like to highlight for investors?

Mr. Boogmans: Well I think that we have enough examples in our portfolio to demonstrate the three different activities of the company as well as our geographical spread. I think that all the investments that have been done are worth mentioning, so it's quite difficult to pick out one deal in particular.

TWST: What is the overall due diligence process?

Mr. Boogmans: Well that's a difficult question in the sense that a lot depends on what's offered by the company in which we want to invest. Moreover, it also depends on how much money is being assembled and whether other venture capitalists are involved in the deal. First of all, we try to really understand the type of business and the qualities of the management. There has to be a kind of fit between the management, the other shareholders and GIMV. We don't make a decision in one day. We are very flexible in the way that we are not bureaucratic and that we can make decisions very fast. But we still need to have a full due diligence of the company we're investing in, and that can take a couple of weeks to a few months time.