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The Fund
for restructuring
and appreciation
of Enterprises
Providing up to € 5M to Real Economy Enterprises, Industry 4.0 growth projects and Real Estate assets, we give groundbreaking leverage for restructuring they need to recover, scale-up and succeed.
Strategy and DNA 01.
Investment model
Averton Sterling is a restructuring and investment boutique which provides financial capital and advisory methodology to build value of operating companies and properties in 3 models:
- Restructuring management, optimization, development and value building of portfolio enterprises.
- Financial and consultancy capital in investment rounds for business scaling (phase III to M&A).
- Partnership in mediation between the enterprises, shareholders and creditors (banks).
Portfolio
Expertise
Audit and Due Diligence Remodeling Strategic consulting Investment strategy Financing and capital Management support Building value M&A
Consultancy
Venture Capital
Private Equity
Investment Bank
Public subsidies
Averton Sterling
Diversification 02.
Selection of targets and proven business remodeling methodology allow for execution of investments resulting in above-standard ROE.
The diversification of investments is guaranteed by the Statutes and the Regulations of Averton Sterling Fund and confirmed by an entry in the Register of Alternative Investment Companies regulated in Poland by Polish Financial Supervision Authority (UKNF).
Restructuring
Mergers
Acquisitions
Development
Venture
Scaling
Properties
Receivables
Secured assets
03. Management
Jakub Niestrój, Ph.D.
Extensive experience in the field of restructuring, investments and project management for large enterprises and SME sector, start-ups, State Treasury companies and public administration. Supervision over the implementation of projects > € 100M.
In 2015-2018, shareholder and board member of the Alteverso Group companies. Responsible for the implementation of priority projects in several dozen enterprises, as well as for obtaining financing and building a professional network in the region of CEE and Western Europe.
In the past an expert at WYG International – a company of the British WYG Group, listed on the London Stock Exchange, specialized in economic and engineering consulting and Senior Consultant at Simon Kucher & Partners – a leading pricing and sales management consultancy.
Investor and member of supervisory boards of diverse advisory and investment companies. Co-owner in Crowdway.pl – leading Polish equity crowdfunding platform.
In 2012 awarded the academic PhD title in the field of Economics.by the decision of the Council of the Faculty of Management at the University of Economics in Katowice.
Mateusz Mazur L.C.
For several years associated with the investment and financial market. Initially operating in the legal industry, then in the corporate and private debt and finance sector.
Board Member and supervisory boards member of significant capital groups (Navi Group SA, GK Prodigo SA).
Passionately involved in design and implementation of ambitious capital projects with a unit value of several hundred million Euro.
An expert on the debt trading market and the industrial waste-management sector implemented in the circullar-economy and zero-waste models.
Legal advisor with extensive transaction experience. He participated in the largest Polish projects carried out in the ESCO and PFC formula, in which he implemented securitization solutions. He cooperated with capital market institutions, responsible e.g. for asset-management ventures. He has restructured enterprises in the trade and sales sector and manufacturing industries.
He specializes in the field of effective structural and financial transformation, combining the ability to rebuild the value of enterprises in the process of change, as well as those at risk of bankruptcy or liquidation.
Q&A 04.
Investors
Enterprises
What are the benefits on taking up the Fund's shares?
Investors benefit with the possibility of multiplying capital in projects significantly exceeding the standard rates if return on capital (ROE).
Individual investors gain the opportunity to participate in investment projects profitable sector reserved for private -equity.
What is the minimum and maximum value of investment ticket?
The amount of the investment ticket for private investors is variable and depends on terms and conditions of the issue and the structure of the project. As standard, investment tickets have a value from 0.5 to 10M PLN for Polish projects and 0.1 to 5M Euro for foreign projects.
The minimum investment ticket for institutional investors is PLN 10M (ca. 2.5M Euro).
What is the legal form of investment instruments?
01. Equity instruments
02. Debt instruments (corporate debt)
03. Mezzanine instruments
In what sectors of the economy does the Fund invest?
The fund implements investment objectives in 11 sectors of the economy and 3 investment models.
The sectors:
01. Real Estate
02. Mass production
03. Renewable energy
04. Biotechnology
05. Assets secured, including receivables
06. E-commerce
07. Mobile applications and 5G technology
08. Industry 4.0
09. FinTech
10. Artificial intelligence
11. Art and collections
Investment models:
01. Restructuring, mergers and acquisitions
02. Business development, venture and scaling
03. Real estate, receivables and secured assets
What is the difference between Averton Sterling and other funds operating on the market?
Averton Sterling enables participation in profitable projects focused on rebuilding value of enterprises by combining VC fund, consulting company and private equity model:
01. Audit and Due Diligence
02. Optimization and remodeling
03. Strategic consulting
04. Investment strategy
05. Financing and capital
06. Management support
07. Building value
08. M&A
Under what conditions is the divestment and exit of the Fund performed?
From the Investor’s perspective: 36 – 60 months in “pure equity” investment programs and 24 – 36 months in in “corporate debt” investment programs.
From the perspective of Enterprise, the investment policy and the Fund’s operating model assume the ability of the Parties to define exit terms at the stage of the Investment Agreement (IA). The investment agreement defines an algorithm that allows the calculation of exit parameters depending on the KPI values defined in the IA.
Exit models:
01. IPO (stock exchange debut)
02. MBO
03. PUT option at pre-defined IRR
04. M&A by the Strategic Investor at pre-defined IRR + premium for value increase at Transaction.
What are the capital sources?
The fund is supplied with public as well as Polish and foreign private capital.
What is the price of subscription for 1 participation unit or Fund certificate?
The offer depends on the terms of the relevant issue of shares.
What is the target value of the Fund?
The target value of the Fund is PLN 200M (~ € 45M)
How can you obtain information on the current investment offer?
For current investment offer please send your request to: office@averton-sterling.com
What are the key priorities of the investment strategy?
The Fund defined three unique elements, allowing for significant leverage of efficiency in building net value assets, multiplying Investors’ profits in 3 models:
01. Scaling to M&A. Readiness to provide financial and substantive capital in investment rounds for business scaling (phase III to M&A)
02. Interim strategic management. Involvement in restructuring management, optimization, development and value building of portfolio enterprises.
03. Mediation and capital partnership. Fund partnership in the mediation and capital model between the enterprise, shareholders and creditors (Bank).
What is an investment horizon for private investor?
From the Investor’s perspective: 36 – 60 months in “pure equity” investment programs and 24 – 36 months in in “corporate debt” investment programs.
What is the model of cooperation between the Fund and Enterprise?
The Fund carries out the due diligence, then terms of the investment agreement are defined, as well as volume of capital commitment, goals to be achieved and disinvestment parameters.
The Fund, in close cooperation with the Management Board and the Owner of the Company, designs and then implements the programs incl. restructuring, optimization of the business model and development investments in order to increase the value of Enterprise.
The model of cooperation with the Fund is characterized by 3 elements:
01. Direct capital commitment and strategic management support.
02. Orientation to strategic goals and building enterprise value.
03. Exit conditions dependent on restructuring efficiency indicators.
What is the process of qualifying the Company for investment?
The investment policy of the Fund provides a 2-level verification of the investment decision process. A positive result of the validation of the first level requires an analysis of legal and financial compliance. The second level requires a positive test of 4 out of 6 investment criteria by the Investment Committee:
01. Real economy enterprises and secured assets
02. A committed and determined management team
03. ROI perspective in 12 – 36 months
04. Scalable business model
05. Consent to optimize structures, processes and business model
06. Exit terms pre-defined in the Investment Agreement
In order to submit a project please send an application with teaser pitch-deck to: office@averton-sterling.com
Is the Averton Sterling Fund different from other funds operating on the market?
Averton Sterling builds a competitive advantage at the interface between expertise of investment fund, consulting company and interim management for venture projects and companies undergoing dynamic distressed or growth change.
As an independent capital and advisory partner, it offers cooperation in restructuring or optimization to selected enterprises in a way that is unique on the market, combining 3 priorities of cooperation with the Enterprise.
01. Direct capital commitment and strategic management support
02. Orientation on goals and building enterprise value
03. Exit parameters depend on the output KPI of restructuring.
What are the benefits for the enterprise from cooperation with the Fund?
The main benefit for the Enterprise is to stop the negative trends caused by the decrease in financial liquidity, business model modification, transferring know-how in the area of business scaling and rebuilding value of the company’s valuation.
Does the Fund have a controlling equity stake in the company's share structure?
Taking over a controlling stake of shares or stocks is not the priority or deal breaker for Fund’s involvement.
Under what conditions is de-investment of the Fund performed?
The investment policy and the model of the Fund’s operation assume the ability of the Parties to define the conditions of exit at the stage of the Investment Agreement (IA). The investment agreement defines an algorithm that allows the calculation of the Fund’s disinvestment parameters depending on the KPI values defined in the UI. The Fund’s disinvestment models are:
01. IPO (stock exchange debut)
02. MBO
03. Put Option at pre-defined IRR
04. M&A by the Strategic Investor at pre-defined IRR + premium for company valuation increase at Transaction.
In what sectors of the economy does the Fund invest?
The fund implements investment objectives in 11 sectors and 3 investment models.
Sectors:
01. Real Estate
02. Mass production
03. Renewable energy
04. Biotechnology
05. Secured assets – incl. receivables
06. E-commerce
07. Mobile applications and 5G technology
08. Industry 4.0
09. FinTech
10. Artificial intelligence and big-data
11. Art and collectibles
Investment models:
01. Restructuring, mergers and acquisitions
02. Business development, venture and scaling
03. Real estate, receivables and secured assets
What parameters should the Enterprise meet in order to cooperate with the Fund?
The investment policy of the Fund provides a 2-level verification of the investment decision process. A positive result of the validation of the first level requires an analysis of legal and financial compliance. The second level requires a positive test of 4 out of 6 investment criteria by the Investment Committee:
01. Real economy enterprises and secured assets
02. A committed and determined management team
03. ROI perspective in 12 – 36 months
04. Scalable business model
05. Consent to optimize structures, processes and business model
06. Exit terms pre-defined in Investment Agreement
In order to submit a project please send teaser and pitch deck to: office@averton-sterling.com
What is the typical investment cycle time of the Fund?
The Fund’s investments are carried out in 3 time horizons:
01. Short term projects (12 months)
02. Mid-term development projects (18-36 months)
03. Strategic projects (36-60 months)
What are the Fund's capital sources?
The fund is supplied with public capital as well as Polish and foreign private capital.
In what form is the investment conducted?
01. Equity instruments
02. Debt instruments (corporate debt)
03. Mezzanine instruments
How does the fund invest in real estate?
The fund purchases real estate, fixed assets or organized parts of enterprises in order to extract real estate assets, restructure, optimize formal and legal matters, carry out the design process, obtain appropriate approvals – in order to increase the value of the property for further resale.
Reports 05.
New
Registration of the first special purpose asset appreciation fund "Alpha"
Read more
New
The challenges of the investment market in Poland - restructuring, consolidation, MBO, succession
Read more
New
SARS CoV-2 as a delayed-action cumulative recession factor
- demand regress as a result of a decrease in consumption
- decline in corporate revenues and individual consumers` income
- instability in financial markets, including inflation, falling asset prices, rising commodity prices, weakening exchange rates and deteriorating liquidity
- turbulence related to the disruption of supply chains
- limited availability of investment, working capital and consumer loans
- deterioration of the general condition of enterprises and decline in consumption moods.
Read more
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Contact us 06.
Warsaw
ul. Poznańska 37
00-689 Warsaw, Poland
+48 22 490 50 00
office@averton-sterling.com
London
63-66 Hatton Garden
London, EC1N 8LE
United Kingdom
+44 203 930 16 52
office@averton-sterling.com
