Direct Investments

NORD Holding founds new medium-sized company

13.08.2015

€ 300 million is available for investment.
NORD Holding GmbH has initiated the founding of a new company Deutsche Mittelstandsholding für Industrie-beteiligungen GmbH & Co. KG (DMH). Two-thirds of the shareholders are occupational pension schemes from Rhineland-Palatinate, North Rhine-Westphalia, Hessen, Lower Saxony, Bremen and Schleswig-Holstein.The remaining shares are held by savings banks and a private investor.

The new company was provided with capital commitments of € 150 m. It will make all investments parallel to NORD Holding and be managed by the experienced NORD Holding team. Together with the resources provided by NORD Holding, € 300 m is available for investment in the SME sector.

Sale to a holding company is often a good way to keep the company together as a whole when it comes to corporate successions. Sales to strategists often means the buyer is only interested in the products, patents or trademarks.

With a more than 45-year history, NORD Holding is one of the oldest investment companies in Germany. NORD Holding and DMH focus on the structuring and financing of corporate successions in the upper mid-sized segment and the demerging of medium-sized business units from large corporations with their investments.

Demerging group units results in new medium-sized companies which often develop an entirely new dynamic without the restrictions as part of a group. According to Kues, this also proves the considerable economic benefits generated by private equity.

NORD Holding has already brought three investments into the new company on a pro rata basis. These are Engelmann Sensor GmbH in Wiesloch (Baden-Württemberg), a software specialist for the fashion industry, Human Solutions GmbH in Kaiserslautern (Rheinland-Palatinate) and Leo's Lekland, a Swedish operator of indoor playgrounds. Leo's Lekland is considering expanding its strong Scandinavian market position into Germany. "In this respect we were a welcome partner for finance and expertise," said Kues about the motivation of the Swedish company.

Another investment is nearing completion according to NORD Holding. By the end of the year Kues expects a total two to three new investments.

We are pleased that with DMH we have been able to significantly expand our investor base.

With the savings banks and the pension funds we have two strong partners with good prospects to accompany us into the next decade.

Matthias Kues
CEO of NORD Holding.

About NORD Holding

With its 50-year history and over € 2.0 billion assets under management, NORD Holding is one of the leading private equity asset managers in Germany with a focus on direct and fund investments.

The fund investments division targets the small- and mid-cap segment of the European private equity market through primaries, secondaries and co-investments.

NORD Holding has a strong focus on emerging buyout managers, hands-on investment strategies and regularly acts as an anchor investor. The division manages € 1.3 billion and ranks among the top decile fund investment groups in Europe.

The direct investments division of NORD Holding focuses on structuring and financing company succession models, acquiring parts of larger groups/subsidiaries as well as on expansion financing of medium-sized companies. In contrast to most other financial investors, who only manage closed-end funds, NORD Holding acts as a so-called "evergreen fund", thereby investing from its own balance sheet with no maturity restrictions. Currently, the fund has interests in more than 15 companies in the DACH region.

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NORD Holding
Unternehmensbeteiligungsgesellschaft mbH
Christiane Lukas
Walderseestraße 23
30177 Hannover

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lukas@nordholding.de