MKB Fonds

About MKB Fonds

MKB Fonds, founded in 2011, is a leading and independent private equity firm specializing in investing in solid and mature Dutch SMEs. These businesses are typically owned by the founder(s) or their families. The primary goal in MKB Fonds' investments is to facilitate phased business successions, better known as pre-exits. Since its inception, MKB Fonds has facilitated numerous successful pre-exits with dozens of entrepreneurs, demonstrating its expertise and skill in this transaction structure.

Value creation

MKB Fonds implements a buy-and-build strategy for many of its holdings. Here, MKB Fonds, in cooperation with its holdings, makes strategic additional acquisitions ('add-ons') of similar or complementary businesses. This strategy promotes expansion of the companies, resulting in accelerated growth and significant value creation. The combination of the pre-exit transaction structure and the application of buy-and-build strategies has significantly boosted the value creation of MKB Fonds Fund's holdings.

In addition, MKB Fonds acts as a proactive and pragmatic partner for the boards of its participations, with MKB Fonds focusing primarily on professionalizing and stimulating growth within these businesses. Characteristic of MKB Fonds is the combination of a long-term value creation strategy, combined with a flexible fund structure without a fixed investment term. This enables MKB Fonds to make sustainable choices. The solid track record confirms these results.

MKB Fonds actively supports the boards of its holdings in the areas of:

• Strategy: Formulating a clear growth strategy for the next five years. What are the goals for the company and what will it take to get there?
• Insight, structure and organization: Setting up good management reporting and defining KPIs, making the right (steering) information available to all stakeholders (board, investor, bank and managers).
• Optimize: Providing support in optimizing processes, administrative organization, revenue model, working capital requirements as well as cost control, among other things.
• Growth: Once the above points have been realized, there is a solid basis for further growth. In doing so, MKB Fonds supports in making growth choices in products and markets, as well as actively supporting the buy-and-build strategy.

Investment Policy

MKB Fonds' investment policy focuses on Dutch SMEs with solid continuity prospects with the following characteristics:

• Wholesale or business service provider (B2B).
• The company has been in existence for at least five years.
• Operating profitability (EBITDA) of > €500 thousand for business service providers and > €750 thousand for wholesalers.
• Enterprise value of €3 million to €30 million.

Track record

MKB Fonds has established a total of six closed-end funds as of December 2023, three of which have been successfully completed. These funds were financed through the issuances of SME Bonds and SME Shares to private investors, with total capital raised of €100 million. MKB Fonds successfully completed 95 transactions as of December 2023 and manages 17 participations across the funds. These participations realized a combined revenue of about €425 million in 2022 and employ over 800 people at home and abroad.