Investment
strategy

Although we do not favour any one sector in particular, we have extensive experience in “business to business” companies. The two types of investment we consider to be the most efficient in terms of value creation are:

Consolidation of fragmented domestic markets

based on leading French companies in markets with high barriers to entry, we contribute to strengthening leadership through a dynamic external growth policy. We have carried out almost 60 acquisitions for the 20 portfolio companies from Pragma I and II, and helped companies such as Brunet, Sandaya and Demeco to grow in size We pay particular attention to the successful integration of bought-out companies, as this is crucial issue in terms of value creation.

International expansion of leaders in niche markets

we select French companies which are well-positioned on niche markets and we initiate or accelerate their international expansion to find new sources of growth, and increase their strategic values. These more international companies have increased levels of visibility and attractiveness. Past successes include accompanying IMV Technologies or Leyton in their strategies to acquire or open subsidiaries abroad.

Most companies in which we invest meet the following criteria:

• Revenues of between 25m€ and 150m€
• Positive profitability
• Strong position on a niche market
• High growth potential (external growth, innovation or internationalization)
• Strong equity involvement from the management
We invest between €10m and €30m per company, in most instances to become the majority shareholder.

Co-investment agreements exist with our subscribers and allow us, if necessary, to significantly increase our intervention capacity.

“The support provided by Pragma’s team is just remarkable. We were able to exchange ideas at any time concerning company organization and the acquisition of several businesses. If it had to do it all again, and with the experience I have today, I would not hesitate to call Pragma.”

Virginie Brunel – General Manager – Demeco