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SMEs as assets – ten times the traction

With SMEs, investors had to cope with life in the fast lane. Until now.

We understand how SMEs look to direct investors, as an asset class – tricky to access, illiquid, people-focused, hard to model, eccentrically-audited, admin-heavy, and generally a fairly sporty ride. Next to the S&P 500’s sedate glide, they can look like a box of hot frogs.

And that’s why we love them. Those barriers to entry hold back the mass of investors, channelling demand towards €100m+ mid-market deals and driving their P/E to plc-style 20x-25x levels. Meanwhile, just over the wall, productive, mature SMEs are performing at much more relevant multiples.

It’s one of the givens of the 20th Century model of capitalism that’s been crying-out for innovation and disruption. SMEs are a power-house of value creation in European economies. But the illiquidity, risk profile and other barriers to ownership have always set them apart. What’s to prevent a sustainable value revolution here, if we could bring these two worlds together?

That’s the vision the Valloop team committed to in 2010, as bank debt for MBOs vanished. They saw the coming silver tsunami of baby boom SME owners needing to divest by 2030. They saw private equity shying away from SMEs under €60m. Working in that world, they knew the answer would take a unique mix of human and financial insight.

But they saw a way. For five years they refined the legal framework and financial components this radical new approach would demand. Financial innovation alone wouldn't deliver - at the heart of the model, we would need to support new behaviours. For another five years, they proved the model worked, in the real world, with real people.

Valloop is the result - a platform that builds-in an element of employee ownership. By doing that, we align the interests of the SME – owners, managers and employees – and the interests of the Fund. This reduces the usual friction, allowing us to scale. It also places the social benefits of employee ownership right at the beating heart of the strategy.

Through co-ownership and employee involvement, we’ve shown our platform can deliver sustainable, scalable SME performance.

We believe a healthier flow of funding to SMEs will unlock economic and social prosperity, wherever they operate. We believe democratising investor access to Europe’s strongest value-creators will be transformative for savers, pensioners and families. We believe our alternative SME strategy can unlock prosperity for all.

Value with values

Partnering with Valloop

It’s a once in a lifetime decision, for most. How will you navigate it?

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Olé! A MEIBO for our amigos

How our Management and Employee Involved Buy-Out (MEIBO) unlocked prosperity for one Spanish SME.

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Intelligent buy-outs – putting people first

The key to unlocking prosperity for you, your family and your community could be your employees.

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Calculating fair value

We don’t play games with value – a fair price is the right price for all parties.

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Is your team ready to take it on?

We don’t just tick boxes for skill sets and personality scores. We want to know if they’ve got the passion.

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Passing the baton – what you’ve told us

When the time’s right, you’ll want to speak with some SMEs who’ve worked with us. Here’s a preview.

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SMEs as assets – ten times the traction

With SMEs, investors had to cope with life in the fast lane. Until now.

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A tune-up for your capital

A peek under the bonnet of the Valloop platform reveals precision engineering, with heart.

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A continent changes hands

Europe’s entrepreneurial baby boomers are setting their sights on some ‘quality time’.

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Valloop unlocks value with employee-involved buy-out and growth investments for SMEs. Our fund supports sustainable SME performance that delivers fair, socially-inclusive value for all.

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