The Acuity Private Fund is an Alternative Private Equity Fund acquiring equity ownership in SMEs via new style Intelligent Buyouts (iBOs) where the acquired entity retains its independence.

The strategy is not sector oriented but based on a demographic, This provides for total diversity across both sector and geography.

The culture is to engage with Senior Managers and Employees via co-ownership to remove the ‘them and us’ syndrome and create a solid foundation for long term and predictable dividend flow.

There is a huge supply of profitable SMEs from this demographic presenting themselves to the Acuity Private Fund. This provides the opportunity to select only the highest quality assets within the following key characteristics:

  • Established for more than 10 years
  • Enterprise Value between €1m and €25m
  • Consistent track record of profitability
  • Strong brand name and product portfolio
  • Solid reputation operating in a defined market niche
  • Operating in low volatility
  • Recession resilient with competitive advantages and high barriers to entry
  • Unrealised growth potential, either organic or through acquisitions
  • Strong management teams who will co-invest in a buyout
  • Does not rely heavily on the current incumbent majority shareholders who are due to retire

The Fund will take an equitable interest by participating in the risk of the business, owning the security of the business income, the security of the controlling share ownership and the financial rewards of the eventual exit value.

The Fund does not invest in distressed situations or turnarounds.

Our empirical investigation indicates (immediately following new ownership) that abnormal returns are substantially higher for firms with boards that have independent outside directors than for firms that are not