Zurich-based White Peaks Capital expects to sign its first majority investment under its private equity strategy this July, managing partner Roy Awad told Mergermarket. The family-backed private markets investment company is in talks with a Swiss target and hopes to close the deal by then, he said.

White Peaks was created at the end of 2022 as the midmarket private capital arm of a Swiss family, Awad said. The vehicle makes direct private equity investments, offers private credit solutions and also invests in private equity funds via a fund-of-funds strategy.

The private equity strategy has a fund volume of more than EUR 100m and will work as a standard private equity structure, with the exception that it is backed by a single Swiss family as a limited partner.

The direct lending strategy has a volume of EUR 300m and can provide various financing solutions, including unitranche, mezzanine, and PIK. In addition to this, there is a EUR 250m fund-of-fund strategy, which continues to be managed by the team. White Peaks will selectively continue to invest in high-quality private equity managers, but plans to focus more and more on its direct investments in the long term, Awad explained. White Peaks has so far only made minority investments since its inception. These include Nomios, a French cybersecurity and network solutions provider, and Liftket, a German high-capacity lifting devices producer for various end markets.

But now that the team has grown to about 10, White Peaks is ready to make its first majority acquisition, Awad said. He plans to gradually expand the team and strengthen functions such as reporting, finance and legal, he said. White Peaks has been able to attract talent from private equity players such as Permira and Capvis, and from top-tier Investment banks and strategy consultants, which helps with deal sourcing, Awad said. In addition to its first platform investment, White Peak is working on numerous add-on deals in Switzerland for portfolio companies.

“Add-ons are a way for us to add value to our minority investments because we can leverage our network and base in Switzerland to scout for local attractive targets,” Awad said.

Investment strategy & Deal sourcing

White Peaks Capital targets small and medium-sized companies generating an EBITDA of EUR 2m to EUR 10m in the DACH region, France and Benelux. The sweet spot is B2B and technology-driven companies across the sectors of software, tech-enabled services and smart technologies, Awad said.

“This segment is very attractive for private equity strategies as there are still plenty of value creation opportunities, and it is also possible to agree to a reasonable valuation with the founders as they are usually re-investing in the business,” Awad said. Potential targets should have asset-light business models with strong cash flow conversion and recurring revenues, he added.

It’s also important that the companies are resilient through economic cycles. The base in Zurich and the backing of a Swiss family give White Peaks an edge in the deal sourcing process among Swiss targets, Awad said. In Switzerland, the team will typically directly engage with targets in bilateral talks or limited processes, while deals in Germany and France are often sourced via M&A advisors, Awad said.

Roy Awad joined White Peaks from Permira’s London-based buyout team, where he focused on French private equity deals. As a result, he can leverage his extensive network in private equity in France and other European countries to scout for attractive targets. Most deals will be financed via bank lending as there are attractive terms available and because White Peaks benefits from established relationships with local banks. What sets White Peaks apart from other private equity bidders is its flexible structure, including majority and minority investment stakes as well as a full focus on the portfolio companies since it undertakes no fundraising activities, he said. The backing of a long-term oriented family also means White Peak is more flexible in terms of its investment horizon than other players, Awad said.