This is why we are looking for secondary investments
With its deal-by-deal approach Capital Mills has not been restricted by fund mandates, and therefore has had the freedom to invest in secondaries. Secondary investments, often referred to as secondary transactions or secondary sales, involve the buying and selling of existing ownership stakes in private companies. Secondary transactions offer flexibility and liquidity to investors, founders, and employees while providing new investors with opportunities to enter the private market.
Secondaries are more relevant than ever. As the market is still ‘sitting on the fence’, and acquisitions and initial public offerings are not happening, many funds are eager to exit their shares to provide liquidity to their limited partners within their fund management periods.
Personal motivations
Motivations can vary. Shareholders might want to realize profits or diversify their investment portfolios. Secondary transactions provide an opportunity to unlock value before an exit event like an IPO or acquisition.
Often, a secondary investment allows founders to receive an early profit on a part of their shares, lifting some financial weight off their shoulders in their personal lives. As Capital Mills has been founded by entrepreneurs, we understand the necessity and urgency of such situations, and the potential that a secondary can unlock.
What we offer
We engage in secondary transactions with a diverse range of private companies, specifically scaleups, across various industries. We look for companies that are profitable and have more than €2M in annual recurring revenue.
