investment philosophy

Investment Philosophy

SouthBridge is established with the aim of assisting Greek growing Lower-Mid market companies to transform into tomorrow’s key market players.

Investment Approach

Our Investment Profile
SouthBridge’s primary focus is investing in Lower-Mid market companies in Greece and the region. We invest in established companies, operating in attractive growth sectors, across a wide range of industries.

We look for companies with a solid track record and a robust strategic plan for expansion, committed and experienced entrepreneurs with strong business acumen.

We provide capital to finance organic growth, expansion in new products/markets, and/or acquisition of complementary businesses that can provide an additional opportunity to improve competitiveness.

Our Structuring Flexibility
A key strength is our ability to adapt our financing approach to each investment opportunity. SouthBridge takes a very reactive and flexible approach, through the provision of tailored funding to finance expansion of each investee company.

We use hybrid financing instruments, such as convertible loans with equity features or subordinated debt with warrants or synthetic mezzanine structures. Such financing structures increase the long-term capital base of an investee company without significantly diluting shareholders’ control.

If syndication is required this is typically to our limited partners.

Our Partnership Culture
SouthBridge’s investment approach is centered on a win-win risk-return allocation with our partners. We pay great importance to aligning our interests with successful business owners and aim to work together with them to create superior returns for both parties.

We are ‘take and hold’ investors with the intention to hold our investments to maturity, investing in the business and its management team for the medium to long term. By investing for longer periods and by having board representation, a deeper mutual understanding is generated between SouthBridge, management and shareholders.

Our Added Value
We target businesses in which our involvement will enhance value creation. We seek to work closely with management and entrepreneurs and provide support in key areas such as financing and managing growth, strategy development and corporate governance.

Practical assistance to investee companies includes among others, access to an extensive network of relationships: clients, suppliers, professional advisors, financial institutions and potential business partners.
Our goal is to exit from our investments after the value creation targets of the business have been achieved.

Our Entrepreneurial Approach
SouthBridge uses its wide network of business owners and professional managers to identify investment opportunities as well as to attract management talent. Our entrepreneurial mindset along with very efficient decision process allows us to take decisions quickly and act rapidly.
Our ability to decide and act quickly, combined with the benefit of local insight differentiates us from firms with widespread decision making structures, creating a competitive advantage for our investee companies.

Why is SouthBridge your “Partner for Growth”

There are several factors that differentiate us from other investors:

  • Commitment to and in-depth knowledge of the Lower-Mid market, as well as insight into the challenges that entrepreneurs face daily;
  • Entrepreneurs and management teams are our exclusive and only focus; People are SouthBridge’s real business and we are committed to investing in entrepreneurs;
  • Maximum flexibility through the use of hybrid financing structures that can be tailored to accommodate specific company needs;
  • Swift execution and cost-controlled process focusing on key risk areas with the aim of devising a solid and resilient strategic growth plan;
  • Innovative deal structuring and mutually satisfactory risk-return allocation, minimize potential conflicts and allow entrepreneurs to focus on growth;
  • Active investing is an opportunity for investee companies to access more than funding; SouthBridge provides real value to its investments, through strategic input and active management support.