Flexstone Global Middle-Market Co-Investments

The philosophy

Flexstone Partners follows a disciplined approach to private equity co-investing, selecting “sweet spot” co-investments, i.e. deals with General Partners (GPs) that are relevant to the sector with proven track-record and that are well-aligned with the firm's portfolio construction objectives.

Three step selection approach

Flexstone proprietary sweet spot marix

Source: Flexstone Partners, for illustrative purposes only

Reasons to consider

Diversified strategy in terms of GPs, sectors and geographies (Europe, US, Asia)
Focus on small & mid-cap sized companies (investment size ranging from $/€ 10 mm to $/€ 25 mm)

Proprietary tool based on academic research to select co-investment opportunities
“Sweet spot” matrix screening
High conviction GPs with deep relationships and aligned interests with Flexstone

$10bn of capital managed or under advisory focusing only in private equity
Global asset management and advisory across private markets, especially in private equity
Team of 56 professionals and local presence in Europe, North America and Asia with senior members of team with 30+ years of deep experience over several market cycles

Invested $1.7 bn¹ in 152 co-investment deals across the US, Europe and Asia
69 deals fully realized, generated a 2.7x Gross Multiple On Invested Capital (MOIC)² and 30.6% Gross Internal Rate of Return (IRR)³, and has distributed $1.7 bn to date

¹ Flexstone Partners. Performance as of 30/06/2024. The gross performance indicated here is the combined performance of investments taken individually.

² MOIC: Multiple On Invested Capital. Metric used to evaluate an investment's performance by comparing the total value realized to the initial amount of capital invested.

³ IRR : Internal Rate of Return. metric used in financial analysis to estimate the profitability of investments.

We specialise in the small and middle market where we believe there are more opportunities to enhance the financial and operational soundness of companies”.

– Eric Deram, CEO & Managing Partner, Flexstone Partners

The analyses and opinions referenced herein represent the subjective views of the author(s) as referenced, are as of the date shown and are subject to change without prior notice.

Risks to consider

All investing involves risk, including the risk of loss. Investment risk exists with equity, fixed income, and alternative investments. There is no assurance that any investment will meet its performance objectives or that losses will be avoided. There could be other differences across similar products in the same strategy. Investors should fully understand the risks and other relevant details associated with any investment prior to investing.

David Arcauz, CFA^®

Managing Partner

Flexstone Partners

Full bio

Eric Deram

Managing Partner

Flexstone Partners

Full bio

Nitin Gupta

Managing Partner

Flexstone Partners

Full bio

The firm

Flexstone Partners is an affiliate of Natixis Investment Managers with US$10 bn in assets under management and advisory (“AUMA”)⁴.

Flexstone Partners is a global asset management and advisory firm offering bespoke investment solutions across all private markets with a focus on the lower, middle market buyouts in the US, Europe and Asia.

The senior team has 30+ years of private market experience, and Flexstone aims to deliver attractive investment returns through risk-adjusted investment portfolios. Clients benefit from Flexstone’s access to of the small- and mid-cap markets and approach to investment selection.