From L to R: Tioopo Capital co-founders Cyril Abou Jaoudeh, Gregoire Louisy and Shahan Sarkissian. (Credit: Tioopo Capital)
Three years after its launch, Tioopo Capital has recorded two new acquisitions and recently announced the closure of the first phase of raising its inaugural fund, "Tioopo TP1," validated last May by the Commission de Surveillance du Secteur Financier, the Luxembourg regulator.
In a statement, the private equity fund co-founded by Lebanese individuals and primarily active in France and the United Kingdom announced that it had reached "40%" of its target of 80 million euros, with a little over 32 million euros raised in two months. "We have 12 months to reach our goal of 80 million euros. If we achieve it sooner, we will immediately close the raise," explained Cyril Abou Jaoudeh, one of the co-founders alongside Shahan Sarkissian and Grégoire Louisy, to L’Orient-Le Jour. Tioopo has recruited a renowned senior advisor, Philippe Duval, former CEO of Edmond de Rothschild in France.
"This first closure is a testament to the hard work of the team and the quality of Tioopo's business model. We are grateful for the trust our co-investors have placed in us, and we look forward to continuing to generate value through our SME-focused, cash-generating, and dividend-paying company," the three entrepreneurs declared. Cyril Abou Jaoudeh added that the "hard cap" (absolute ceiling of the fund) has been set at 100 million euros.
Acquisition of MP Vitrage
With this money, collected mainly from "leading investors and family offices in the Middle East and Europe," Tioopo Capital plans to invest in at least eight companies meeting its selection criteria. "These haven't changed: we still target family-owned SMEs in France or the United Kingdom, positioned in niche markets and standing out for their unique expertise. These companies must be profitable and have development potential that we can guide," recalls Cyril Abou Jaoudeh. These are usually businesses up for sale because the children do not want to take over after their parents.
Specifically, Tioopo Capital buys shares in a targeted SME, manages it for a certain period to guide its development, and, unlike traditional funds, has the flexibility to keep the company in its portfolio if it pays dividends or sell it after 5 to 7 years. The companies are acquired through Leverage Buy-Out (LBO), borrowing part of the invested amount. Unlike a traditional private equity fund, Tioopo Capital commits to paying dividends to its investors from some of the companies in its portfolio.
Before launching its Tioopo TP1 fund, Tioopo Capital had already invested in four companies (three in France and one in the United Kingdom) through "deal-by-deal" financing, a custom-tailored financing strategy on a case-by-case basis. Since then, it has added two more to its portfolio. "First, there is Churches Fire and Security, a British fire and security company, in which we invested deal by deal. But we also acquired 100% of MP Vitrage shares, a French SME specializing in the manufacture of old-fashioned glazing using a particular technique, materials used in the restoration of historic buildings," enumerates Cyril Abou Jaoudeh. The next acquisition, which Tioopo Capital does not wish to disclose at this time, should be finalized before the end of the year.
