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1. What is GIMV?
2. Who manages GIMV?
3. What is GIMV’s background?
4. What is private equity?
5. In what areas is GIMV active?
6. What companies are in GIMV’s portfolio?
7. What is GIMV’s investment procedure?
8. How does GIMV monitor its portfolio companies?
9. When does GIMV sell its portfolio companies?
10. What happens to the profit made on the sale of a shareholding?
11. What are GIMV’s plans for the future?
1. What is GIMV?
GIMV is the largest investment company in Belgium specialized in investing in the equity of unlisted companies (private equity). Both start-up companies and strong SME's in traditional and innovative industries are eligible for investment.
GIMV is often represented on the board of its portfolio companies. A such it can not only ensure the necessary financial resources, but with its knowledge and experience it can also be a sounding board for the management.
Even though GIMV is a Flemish company, it invests in both foreign and domestic companies. Most importantly these companies have to be willing and able to grow. The profits GIMV makes will be reinvested in companies with healthy prospects.
2. Who manages GIMV?
The Managing Director (Dirk Boogmans) is entrusted with the day-to-day management of the company and may represent the company within the limits of the day-to-day management. Within the investment strategy established by the Board of Directors and within the limits of the day-to-day management, the Managing Director has autonomous decision-making powers for investments and divestments up to a limited size.
The Managing Director is assisted in the execution of his task by the Executive Committee. In addition to the Managing Director the Executive Committee consists of the CFO (Marc Vercruysse) and the CLO (Dirk Beeusaert). GIMV’s business units are represented on the Executive Committee by their managers:
The Executive Committee has solely an advisory role and therefore has no decision-making powers. It meets fortnightly and whenever convened by the Managing Director.
The Board of Directors, chaired by Herman Daems, is responsible for strategic and major investment decisions. The 14-member Board of Directors meets monthly to set course of strategic policy. The Managing Director follows up this strategic policy.
3. What is GIMV’s background?
The Flemish government established GIMV in 1980. Initially, the goal for GIMV was to help Flemish companies on their way to expansion and international growth. As a result of the economic crisis in the early 1980s, GIMV had to deal with many restructuring dossiers submitted by Flemish companies. Since then, GIMV’s contribution has become two-fold:
- on the one hand, GIMV invests in companies
- on the other, GIMV uses its knowledge and expertise to help its portfolio companies expand successfully.
GIMV went public in 1997. 30% of its shares are currently being traded on Euronext Brussels. Since the 2000 takeover of Halder in Germany and The Netherlands, GIMV has become more active in international private equity financing.
4. What is private equity?
Private equity is the capital that is invested in a company that is not listed on a stock exchange.
5. In what areas is GIMV active?
GIMV operates in three areas:
GIMV keeps its portfolio in balance by evenly distributing the investments over start-up companies, fast growing companies and major enterprises. In this way, GIMV positions itself as a player on the international market.
6. What companies are in GIMV’s portfolio?
GIMV’s portfolio consists of more than 150 participations in a variety of different companies.
GIMV’s shareholdings in national and foreign companies focus on three domains:
Approximately 75% of GIMV’s portfolio consists of unlisted companies. The remaining 25% are shareholdings in companies quoted on the stock exchange. Belgian companies represent just over half of all GIMV’s shareholdings; the remaining investments are spread over companies in the USA, other European countries and, to a lesser extent, Asia.
7. What is GIMV’s investment procedure?
The investment managers at GIMV’s various business units, who actively seek new investment opportunities, submit proposals. Those proposals can originate from an investment dossier provided by one of GIMV’s network contacts or submitted by a company itself. The complete business unit of the focus area in question evaluates each incoming investment proposal.
The unit’s investment manager leads a team that investigates the company thoroughly before negotiating the investment size and method. The investment manager then submits a proposal to the other members of the business unit for joint decision.
Depending on the amount to be invested, the investment dossier is presented for final decision either to the investment committee in the case of smaller amounts, or for major investments, to the Executive Committee or Board of Directors.
8. How does GIMV monitor its portfolio companies?
GIMV aims for a long-term partnership in which active involvement in the portfolio companies is of great importance. It does not merely want to be a sounding board for new ideas but also wants to make a direct contribution to the development of strategic contacts, help in making difficult management decisions and coach the company through its further development, growth and various financing stages.
Because GIMV's investment procedure requires the whole team to approve a new investment, you can always assume that a whole team stands behind the portfolio companies. Whether their management wants to discuss new ideas, to hire new people or to get advice before making a strategic decision, they can always count on the extensive capabilities of an entire team.
Its focused investment approach also allows GIMV to rely on an extensive network of established industrial contacts, which is also certain to contribute to the growth of the various companies.
9. When does GIMV sell its portfolio companies?
GIMV buys companies and sells them with increased value. When GIMV buys a company, it will do all it can to help and support its development. GIMV uses its expertise to create an ideal supportive environment and in this way offers the portfolio company an optimal path to growth.
Once the portfolio company has grown vigorously and is ready for the next phase in its economic development, GIMV sells its shareholding. It then reinvests the gains that it realises on the sale in new companies with growth potential.
10. What happens to the profit made on the sale of a shareholding?
GIMV’s policy is to reinvest its capital gains in companies with healthy prospects. In addition, the Board of Directors pursues a policy in which it proposes to the General Meeting of Shareholders a designated use for the balance. This proposal is based on a dividend growth that is at least equal to inflation, insofar as profitability allows for it.
11. What are GIMV’s plans for the future?
Since its establishment in 1980, GIMV has grown from a Flemish government instrument into an international private equity player. In the coming years GIMV wants to:
- expand its international strategy and
- strengthen its market position in the local markets where it is currently active.
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