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Excellence in Small & Mid Sized Entrepreneur Investments

Why invest in small and mid-sized enterprises (SMEs)?

European SMEs, with a particular focus on family and owner-managed businesses: well positioned due to superior quality and growth profiles

  • SMEs are the backbone of Europe’s economy. They account for two-thirds of the continent’s total workforce and are a vital force in creating economic value.
  • SMEs tend to operate in specific niches or specialized industries, and often rank among the leaders in their fields. This puts them in a position to command higher margins and generate above-average growth.
  • Quality on top: Owner-managed companies (entrepreneurs) stand out in the corporate landscape. They typically have rock-solid balance sheets with low levels of debt, a well-established culture of cost consciousness, and long-term views.
  • 24%

    lower leverage ratios at owner-managed companies compared to the total market

  • 46%

    higher EBIT margins at owner-managed companies compared to the total market

  • 40%

    less sell-side research coverage for European small caps compared to the coverage for the total European market 

What does this mean for investors?

The universe of small and mid-sized companies is vast, encompassing both the stock market and the private equity space. Most of these companies receive little attention from financial analysts and institutional investors compared to large companies. SMEs are therefore often undervalued because their potential is not (yet) fully appreciated by the market. This situation offers excellent opportunities for specialized stock pickers who can pick out top performers that offer above-average growth potential by following a disciplined, fundamental, due diligence process for investing. Thanks to these qualities, adding exposure to SMEs can enhance a portfolio's return potential and, in the case of a portfolio of blue chips, also help to optimize its risk/reward profile through greater diversification. 

Why Bellevue?

In the high-growth SME space, we focus on owner-owned or family-run companies – so-called entrepreneurs. By focusing specifically on this particular segment, we are focusing on stocks that have historically outperformed the typical executive-managed stocks over the long term thanks to their specific qualities.

In the private equity space, we focus on financing the growth of top-quality SMEs through direct equity investments or co-investments and in doing so we give our investors access to an investment universe that is weakly correlated with the liquid capital markets.

  • Pioneer in the field of entrepreneur strategies
  • Many years of experience in managing direct investments in small and mid-sized companies in a variety of sectors and as an investor focused on Swiss and European small & mid cap stocks
  • «From entrepreneurs for entrepreneurs»: Bellevue itself is an entrepreneurial company, as its employees are important part of the ownership structure

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