A quest to build a sustainable business and make value-adding investments
It's my pleasure to extend a warm welcome our website visitors.
SIG-i Capital’s mission is to build a sustainable investment business that facilitates growth in real economy by providing financing in an informed and responsible manner to those companies that create positive social and economic value.
We see a substantial opportunity in the European junior debt market on the back of shrinking traditional financing landscape that has been taking place over the last few years. In addition to participating in the overall growth of the asset class, SIG-i positions itself in a more complex part of the market which calls for tailored financing instruments. This is where the firm could add most value to both investors and investees by applying its core competencies of innovative structuring and thorough due diligence.
At SIG-i, we strive to foster an environment in which our stakeholders - employees, fund manager's shareholders and fund investors - can make an impact. We hope you could join us on this quest.
Good time for our Fund II
With many major stock market indices recording the worst performance in decades – S&P 500 was down some 20% in 1H22, the worst performance of the US benchmark index since 1970 – many investors are worried about the prospects for the economy and the risk assets. This environment may well end up being an opportune time to launch our fund II.
We believe we have demonstrated with our first fund that we can generate alpha by sticking to our rigorous investment process starting from deal selection and due diligence through active management of the portfolio (including restructurings).
The environment of heightened risk perception and increasing interest rates rises the return to the beta – we see manifestations of this in our deal pipeline. In fund II we are looking to take advantage of the opportunities we expect to become available in the environment that promises to award greater return to risk by deploying our alpha-generating investment process over the investment horizon of the next three to four years.
Fund II Launch
SIG-i Capital is pleased to announce the launch of its second European mezzanine and special situations fund, SIG-i Euro Mezz II. The first close investors, comprising a Swiss pension fund, a group of family offices & high-net-worth individuals and SIG-i Capital’s founders, committed €50 million (plus an equivalent amount in co-investments) to the Fund.
Guided by the strong deal pipeline, the team expects to pursue deal opportunities exceeding the quantum of first close commitments over the next six months and intends to undergo a second closing in early 2023. In SIG-i Capital’s opinion, the fundamentals-focused and structuring-heavy investment strategy pursued by the firm is likely to be especially effective at tackling and leveraging market dislocations created by the current geopolitical and economic conditions.
The predecessor EUR200m fund, now closed for investments, has generated net mid-teens IRR in EUR terms and returned the majority of the capital to its investors. SIG-i makes infrequent investments devoting four to eight months to structuring and due diligence from start to closure of a transaction. In SIG-i’s view, a meaningful part of the return comes from the firm’s ability and willingness to engage in detailed due diligence and come up with innovative, investee-specific investment solutions. The six-year track record also demonstrates specific differentiating features of the strategy which targets equity-like returns with downside protection via security and other creditor rights. SIG-i Euro Mezz II will pursue the same investment strategy.
SIG-i Capital AG was founded by former executives of Special Investments Group of Credit Suisse in 2019. The two senior team members have known each other for over fifteen years. The rest of the team has an established track of collaboration in the last few years.
SIG-i Capital's ticket sizes range between CHF10m and CHF50m. Transaction terms vary depending on the risks of an underlying business, the type of instrument and the quality of the security package.
Realised returns track at a mid-teens IRR.
The firm values hard work, perseverance and loyalty. A typical SIG-let species is characterized by the presence of witty, inquisitive and flexible mind, piercing, all-seeing eyes and an insatiable appetite for learning.
Our investees are borrowers with solid fundamentals temporarily exposed to non-standard conditions.
We tend to help companies that require growth or acquisition capital. We may also be involved in recapitalizations and bridge financings and prefer sponsorless deals.
SIG-i is a supportive and patient capital provider. It stays engaged with the investees during an entire investment period and takes an active but constructive stance in adverse market conditions.
SIG-i Capital deploys value investing philosophy that involves obtaining a thorough understanding of an investee company’s business model and strategy.
SIG-i’s focus on the economics of the business is welcomed by investee companies and often helps the firm become the partner of choice.
Differentiated due diligence, innovative structuring and proactive deal sourcing are our strengths.
The team pioneered a number of non-standard structuring features to address investment-specific risks that were instrumental to securing the transactions in question. Detailed and independent analysis also facilitates a nuanced understanding of the risks and the attractions of an investment improving the likelihood of achieving investment risk/return targets.