Success is not about money, but about people and skills
Buy low, sell high is one of the oldest investment wisdoms. How does Serenity Return Capital SRC try to live this principle? We believe that we must search our investment opportunities in atypical moments of a company's life. Such atypical moments can either be created through lacking succession plans or through turmoil created by an increasingly complex macro economical and geopolitical context affecting companies in our priority targeted regions: Western and Eastern Europe, with a primary focus on Switzerland and it's direct neighbors.
Such atypical moments could be caused by the struggles of an investor.
- A struggling bank who decides for financial and strategic reasons to separate from minority VC holdings.
- A yacht docked in the black see, for sale at a discounted price, as it would be ceased if it were to sail to the Mediterranean.
- An underperforming asset in a large fund or trust
- Or simply an entrepreneur struggling to find the right successor for his or her business.
Finally, SRC makes it a primary objective to pay a 5% dividend annually. Serenity Return believes that a healthy company must be capable to do both, reward its capital providers and invest into growth. By paying an annual dividend it forces the entire organization to focus on delivering sufficient return for both dividend and growth, thus creating a healthy business models.
Both qualified or private Investors who do not really look for a dividend can of course immediately capitalize their return by adding it to their investment at current NAV.
Investment Focus
SRC Value Model
SRC pragmatically and systematically applies SRC Value Model
Enhance Top Line
Expand
Renovate
Innovate
Disrupt
Safe Cost through Shared Services
Finance & Control
Human Resources
Marketing
IS/IT
Add Skills
Marketing
Digitalisation
E-Commerce
Focus on small and mid caps
Serenity Return Capital is focusing on small and mid caps opportunities
Low demand
Small for strategic buyers, fewer funds in this segment
Growth stories often limited
Compensated through SRC Value Model
Reasonable price
CHF 0.5 - 5.0 Million (larger transactions only with direct investor support)
Steady and solid cash flow
Often under-valued
Tri-Party Relationship
New Management Team
Involvement
Vision
Ambition
Challenge
Former Owner
Actif Transition
Mentoring
Result-Oriented
Serenity Return Capital
Strategy
Shared Services
Support
Return
15 % Return of Free Cash Flow
15% of the acquisition price is the minimal expected annual Free Cash Flow.
In other words we are targeting to buy around an EBITDA multiple range from 3-6 times maximum.
20 % Long -Term IRR
20% is the long-term IRR ambition on the investment.
5 % Dividend (net of Management Fee)
As a differentiating factor with other funds, our priority is to provide a sustainable and steady 5% (net of reimbursement of management fees) dividend on the invested amount.
