Invera Equity Partners, a fund specializing in alternative investment management, was founded in March 2020, in the midst of the pandemic. Despite its relatively recent launch, the firm already boasts an interesting investment portfolio. One of its latest investments is €9 million in Entrio, a ticketing platform for concerts, festivals, and events. Invera has also invested in Metamorfoza, the company representing the world’s largest privately-owned museum chain, the Museum of Illusions. The portfolio further includes Marles, a Slovenian manufacturer of prefabricated wooden buildings, and Kompare.hr, a Croatian platform for comparing and purchasing insurance and telecommunication services. The firm remains on the lookout for entrepreneurs with solid financials and growth potential, according to Denis Sabolović, one of the fund’s partners.
Investment Strategy and Approach
“We focus on key factors such as the business model, understanding how the company operates, what customer problems it solves, how it addresses them, how unique the product or service is, and the competitive market environment,” Sabolović explains. “Additionally, we assess the potential for further growth and development. With our extensive experience, we can quickly conduct an initial analysis within our internal team, having already evaluated numerous companies across various industries. This helps us identify the most promising opportunities efficiently.”
Sabolović goes on to describe their thorough evaluation process. “We conduct a detailed review of the business, focusing on all functional aspects, including production, marketing, sales, procurement, processes, human resources, organizational design, data, technology, as well as potential acquisitions and synergies. Our process is highly detailed, and we exercise great caution when deciding which companies and industries to invest in.”
Throughout this process, Invera maintains a sharp focus on understanding the internal and external factors that represent growth potential, as well as the associated risks and how best to mitigate them.
Industry Expertise and Market Analysis
As the evaluation progresses, Invera seeks input from industry experts worldwide, primarily from the U.S. and Western Europe. “We engage in comprehensive market analyses, examine the business models of leading players, and conduct detailed conversations and surveys with customers and suppliers,” says Sabolović. “This provides us with concrete insights into the growth potential of products, services, and markets.”
Profitability Analysis and Simulations
“Our analysis of investment opportunities is extensive,” he continues. “When creating a return plan or evaluating profitability, we quantify every activity we’ve identified as an opportunity for growth. This allows us to gain a deep understanding of the potential growth rates.”
Sabolović notes that multiple simulation models are run to assess the impact of each assumption on profitability, returns, and risk levels. “When we finalize the financial model, which we adopt as the investment scenario, we typically project double-digit growth rates. Current results show that we often exceed our initial assumptions, achieving higher growth rates than originally planned. This speaks to the robustness of our investment assessment process, as well as the ongoing support we provide post-acquisition.”
Photo: Ratko Mavar
Original source: Puškarić, Ksenija. Lider, September 27, 2024