On 12 October, our bank and the Belgian Venture Capital & Private Equity Association put the winning companies in the spotlight. With the support of Private Equity, all three completed a remarkable growth track.

The winners of the 2022 Private Equity Awards have been announced. It was the fifth time that BNP Paribas Fortis organised this event together with the Belgian Venture Capital & Private Equity Association (BVA). In addition to rewarding Belgian growth companies, this is also a good opportunity to highlight the added value of venture capital for start-up, fast-growing and mature companies.

And the winners are...

The three winners were selected from nine nominees in three categories: Venture capital, Growth, and Buy-out company of the year.

Qover was voted 'Venture Company of the Year'. This award was created for young companies that develop and market an innovative product or service with the support of a venture capital investor.

Qover enables any digital company to embed insurance in its value proposition. The company has built a tech platform that can launch any insurance product in any market, language and currency in a matter of days. The company is ready to scale up internationally and was praised for its innovative and disruptive business model.

Lansweeper was named 'Growth Company of the Year'. This category is for companies that have significantly expanded their activities through organic growth or acquisitions. They bring a financial partner on board who does not want control.

Lansweeper is an IT Asset Management platform provider that helps companies better understand, protect, and centrally manage their IT devices and network. The company has developed a software platform that can be used to create an inventory of all types of technology assets, installed software, and users. Besides setting an excellent financial track record, the company succeeded in gaining a solid foothold internationally.

Sylphar was the winner in the 'Buy-out Company of the Year' category. These are companies that achieve growth through involved management with the backing of a private equity investor with a controlling interest.

Sylphar develops and packages innovative and consumer-friendly OTC products worldwide. OTC products are medicines that are sold directly to the consumer without requirinng a doctor's prescription. Examples include tooth whitening products and skin, hair and body care products. Their spectacular digital transformation of the sales process, strong international expansion, and rapid product development were decisive factors.

"As a financial instrument, private equity is perfectly suited for boosting innovation and sustainable growth. The three winners have all proven this", says Raf Moons, Head of BNP Paribas Fortis Private Equity.

Find out more about Private Equity at BNP Paribas Fortis.

Source: press release

The Private Equity Awards will be presented on 12 October 2022. We are organising this event for the fifth time, together with the Belgian Venture Capital & Private Equity Association (BVA). Check out this year’s nine nominees.

The Private Equity Awards reward Belgian companies that have received support from a private equity or venture capital investor for their growth and development. This is the fifth time that the Belgian Venture Capital & Private Equity Association (BVA) and BNP Paribas Fortis are organising this prestigious award ceremony.

The nine finalists were nominated based on criteria such as sustainable growth, authentic leadership, and active ownership. They are divided into three award categories: Venture capital, Growth, and Buy-out company of the year.

Venture company of the year:

• Aerospacelab
  Aerospacelab is an innovative scale-up specialising in satellite platforms and information obtained from geospatial technology. The company designs, manufactures and operates a constellation of satellites for remote sensing, collecting useful information.
• Precirix
  Precirix is a biopharmaceutical company and a spin-off of the VUB. It is dedicated to extending and improving the lives of cancer patients by designing and developing precision radiopharmaceuticals.
• Qover
  Qover enables any digital company to embed insurance in its value proposition. The company has built a tech platform that can launch any insurance product in any market, language and currency in days.

Growth company of the year:

• Efficy
  Efficy has developed a complete and highly customisable SaaS (Software as a Service) CRM (Customer Relationship Management) solution. The company wants to become five times bigger, increasing its market share to 5% of the independent CRM market in Europe, within five years.
• Fedrus International
  Fedrus International is an international building materials group that manufactures and distributes roof and façade materials and services with a focus on EPDM rubber and zinc. The company wants to become the preferred partner of building professionals, with high quality standards and a great sense of innovation.
• Lansweeper
  Lansweeper is an IT Asset Management platform provider that helps companies better understand, protect, and centrally manage their IT devices and network. The company has developed a software platform that can be used to create an inventory of all types of technology assets, installed software and users.

Buy-out company of the year:

• Baobab Collection
  Baobab Collection sells diffusers and candles made from hand-blown glass or metal clad with precious leather. The Belgian brand remains true to its values of craftsmanship and excellence by supporting European expertise and craftsmen.
• Sylphar
  Sylphar develops and markets innovative and consumer-friendly OTC products worldwide. OTC products are medicines that are sold directly to the consumer without requiring a doctor's prescription. Examples include tooth whitening products and skin, hair and body care products.

• House of HR
  House of HR is a leading European HR service provider focusing on Specialised Talent Solutions and Engineering & Consulting. Their goal is to connect people’s talents and dreams with successful companies.

Drive innovation and sustainable growth

"Private equity is a financial instrument that is perfectly suited to boost innovation and sustainable growth. The result is strong growth. But private equity involves after all so much more than just raising capital. Venture capital investors also share their knowledge and network, opening many doors. All the nominees have a solid track record and are all in with a chance to win. I am very curious to see which companies will take home an award", says Raf Moons, Head of BNP Paribas Fortis Private Equity.

Find out more about Private Equity at BNP Paribas Fortis.

Source: Press release BVA

Private equity can also be a convenient way for SMEs to strengthen their equity and finance their further growth. But how do you attract private equity investors? And how do they operate?

Private equity can refer to many things. Which investment techniques are involved in private equity and in which cases are they used?

Private equity

Private equity is an instrument used by FPE to acquire an equity interest in a company, either alone or together with other investors. This does not involve a passive investment, but active share ownership: the aim is to engage in a partnership in the medium or long term. In concrete terms, this means that FPE is represented on the Board of Directors as a minority shareholder and in that capacity provides strategic and financial guidance and/or further professionalization of the company.

After a few years, FPE will withdraw from the company again. How this happens exactly is decided in consultation with the co-shareholder(s). They can buy the interest from FPE, but FPE may also sell it to another private equity investor or industrial player.

A company may decide to attract capital for various reasons. A common reason is that the company seeks to finance growth by increasing its activities, internationalising or acquiring other companies. The advantage is that no new private funds or excessive leverage are necessary. Other options are a business transfer or a (partial) buyout of family or less active shareholders.

Venture capital

Venture capital, also referred to as start-up capital, is a form of private equity used to finance early-stage, high-tech companies. These are mainly innovative start-up companies with promising growth prospects. FPE mainly provides venture capital through investments in university venture capital funds.

Mezzanine financing

Mezzanine financing is a long-term subordinated loan for which the company is not required to provide any interim repayments, but makes one lump-sum repayment at the end ('bullet'). These factors mean that the risks of mezzanine financing are higher, which makes it more expensive than a conventional loan with a shorter term, a repayment schedule and securities.

The company does have to generate sufficient returns and liquidity in order to bear the interest charges. The total payment usually consists of a combination of the following elements:

• Cash interest: Interest that is paid at regular intervals during the term.
• 'Payment in kind' (PIK) interest: Capitalised interest that is not paid in cash during the term, but is added to the payable capital and repaid along with the principal.
• Warrant: An instrument that entitles the provider of mezzanine financing to acquire a small percentage of the share capital later. This allows the provider to enjoy a variable payment too.

The exact relationship between these elements depends on the type of company, its future plans and the arrangements it has made with the financier. A company generating a lot of liquidity will be able to cope with a higher cash interest, while a company with a great need for working capital will tend to go for a higher PIK interest or more warrants.

Mezzanine financing is often used for companies facing a financing gap: an investment need that cannot be fully covered with capital or conventional leverage. A company can also opt for this form of financing if does not need external capital injection because there is sufficient equity present or because the company prefers not to open up the capital to new shareholders, for example.

Thanks to its low-pollution solutions and the arrival of new investors, the Mons-based company has every intention of continuing to grow. Discover more about this inspiring success story.

Eradicate the environmental and health problems associated with medical waste on a global scale: Ecosteryl's ambitions match the technical expertise of this Mons-based company. Founded in 1947, its core business was equipment and machinery for the mining industry.  Around twenty years ago, it completely reinvented itself by specialising in the treatment of (potentially) infectious waste from the healthcare sector.

A global player with high-profile clients

Today, Ecosteryl is a globally recognised player in its sector, exporting 100% of its production to more than 65 countries. Its customers? Hospitals, of course, but also organisations in the waste recycling sector and international institutions such as the World Health Organisation, the World Bank and the United Nations, as well as cities and states. The company employs around forty people and has an annual turnover of over €20 million.

Medical waste, a critical public health issue

Syringes, dressings, masks, sharp instruments... 15% of medical waste is considered hazardous and therefore requires special treatment. Given that a single hospital bed produces between 0.5 and 3 kg of this waste every day, it's easy to imagine the scale of the problem. The infectious, toxic and sometimes even radioactive risks associated with hazardous medical waste are far from minimal: among other things, it can trigger or accelerate a pandemic, and even give rise to new diseases. Decontamination and recycling of this waste, the only solution to eliminate this health risk, is therefore a global public health issue.

An environmentally responsible process

Direct incineration or autoclaving: these are the two methods used by Ecosteryl's competitors to decontaminate hazardous medical waste. The problem is that these processes are far from being environmentally neutral. Incineration causes significant CO2 emissions and harmful emissions, such as dioxins, and is also energy intensive. And autoclaving requires large amounts of water and energy, again with significant environmental consequences.

It is in this area of the environmental footprint that Ecosteryl has made a difference, thanks to a technological breakthrough developed in collaboration with the University of Paris. The decontamination and recycling process uses microwave and dry heat technology to disinfect hazardous waste. The decontaminated waste is then shredded to reduce its volume, after which it can be processed in the same way as non-hazardous waste. Or better still, it can sorted and recycled.

This process requires very little electricity to operate, and its environmental performance compared to incineration and autoclaving is incomparable in terms of emissions and water consumption.

Too much plastic in medical waste: recycling instead of prevention

Single-use plastic products, equipment and utensils are a fact of life in hospitals. In many cases, this single use is justified, for example for syringes. The problem arises when this waste is directly incinerated. But thanks to pre-treatment, decontaminated and dried waste can be given a second life.

Until now, there has been no machine for this final stage. Ecosteryl's latest development, R-Steryl, fills this gap. It is a unique sorting centre. Placed after the decontamination machines, it can sort decontaminated waste and recycle up to 80% of it. The major players in waste collection and treatment know that recycling is and will be a real challenge in the coming years. Ecosteryl is also positioning itself as a key player in this field, and is investing in a number of analyses to this end.

Private equity to accelerate development

Despite its size in the medical waste decontamination sector, Ecosteryl has no intention of slowing down. The company intends to continue and accelerate its international growth, and welcomes new investors: BNP Paribas Fortis Private Equity,  Wallonie Entreprendre and IMBC, an investment company focused on the Mons, Borinage and Centre regions. Philippe Dufrasne, Chairman of Ecosteryl, comments:  “With these new shareholders, we have found the right partners to help us stay ahead of the game and achieve our long-term goals, particularly in terms of ESG (Environmental, Social and Governance) performance.”

A priority to invest in the transition of companies

BNP Paribas Fortis is also enthusiastic about this new project.

“We are particularly proud to support this company, which has developed a unique expertise in the production of cutting-edge equipment specialised in the environmental field. Over the years, Ecosteryl has succeeded in expanding worldwide in a niche market at the intersection of environmental and health issues. This investment is fully in line with our ambition to invest €1 billion in venture capital by 2025, focusing on funds and companies that respect environmental, social and governance criteria,” explains Raf Moons, Head of Private Equity at BNP Paribas Fortis. 

The Princess Elisabeth Island, is the world's first artificial energy island for transporting offshore wind power to land. A combination of innovation, technology and biodiversity conservation.

8,802 km: that's the length of all the onshore and offshore power lines and cables managed by Elia Transmission in Belgium.  As the operator of the Belgian high-voltage grid, Elia keeps the lights on by matching electricity generation and consumption at all times.

Artificial energy island

Grid operator Elia has just started to work on one of the most challenging projects in its history: the Princess Elisabeth artificial energy island. It will be located in the middle of the 285km² Princess Elisabeth wind zone. This is the second offshore wind zone in the Belgian North Sea that has yet to be fully built. With a capacity of 3.5 gigawatts, the new wind farms will produce electricity equivalent to the annual consumption of 3.5 million households.

Catherine Vandenborre, CFO of Elia: “The Princess Elisabeth Island is a vital link in the successful energy transition in Belgium. The island has a dual function. First, it will bring electricity from the new offshore wind farms to the mainland. And then from 2030, the island will also be connected to wind farms in other countries with which electricity can be exchanged. This will give our country access to cheap and renewable energy.  This is crucial for our energy-intensive industries, which are rapidly moving away from fossil fuels and switching massively to wind energy over the next 10 years. In this way, Belgium is contributing to Europe’s climate goals and the ambition to realise 300 gigawatts of offshore wind in the North Sea by 2050.”

Designing for nature

In terms of location, design and implementation, due attention is being paid to limiting unwanted impacts on the marine environment. “We are going one step further and opting for nature-inclusive design,” explains Catherine Vandenborre. “In consultation with experts, we are taking concrete steps to protect the biodiversity around the island. For example, we are adding ledges to the outer storm walls where the kittiwake – a vulnerable bird species – can rest and breed. Below the waterline, several measures will be combined to create a diverse and rich artificial reef, with a particular focus on the return of the European flat oyster.  The measures have been selected on the basis of their technical feasibility and expected positive outcome.”

Co-creation and innovation

Achieving such a nature-inclusive design required close collaboration and knowledge sharing between all stakeholders and different domain experts. “An instructive process for all involved,” confirms Vandenborre. “With this initiative, Elia wants to set the tone for the environmentally friendly realisation of future offshore infrastructure. Europe’s seas are becoming the power stations of the future. By integrating biodiversity conservation measures from the design and construction phases, we want to increase and accelerate the positive outcomes. The co-creation project with the experts has already made an important contribution to scientific development in this field. But the work is not finished. Monitoring programmes will be put in place to follow up, and if necessary, adjust the selected measures.

Ready for the next gust of wind

As one of the main financial partners, BNP Paribas Fortis is supporting Elia’s transition to a reliable, affordable and environmentally friendly energy system. BNP Paribas Fortis has already financed 8 offshore wind projects in the Belgian North Sea. These 8 farms together represent 2200 megawatts, equivalent to 2 to 3 nuclear power plants. The next round? New wind farms in the Princess Elisabeth zone. This will be done through project financing, with the underlying contracts and resulting cash flows backing the loans.