Companies held in the Astorg Partners’ portfolio must show an ability to generate and sustain high operating margins. This may be the result of high entry barriers protecting their market or a strong competitive position in their market segment, giving them sufficient pricing power to protect the margins derived from the sale of their goods or services.

Therefore, Astorg is looking for companies that are market leaders, or that enjoy structurally recurring sales, or companies sheltered by an asset base that would be difficult to replicate (brands, patents, production equipment, etc.).

Although Astorg Partners is investing primarily in France, its investment criteria include the availability of a strong export base, preferably located in geographical areas with mid and long term sustainable growth. Astorg is also looking for companies that can develop external growth platforms abroad.

Astorg Partners teams up with managers with an entrepreneurial flair, ready to act as the joint owners of the company and not only as professional executives. Managerial talent and past performance are key ingredients, but a strong commitment to build personal equity by increasing the value of the entrusted assets is a determining factor for Astorg. Like all entrepreneurs, the executives who become Astorg partners must be driven by a long term vision of the company strategy, while remaining aware of the high cost of capital. Leading to a permanent optimization of capital employed.

Astorg also invests with managements teams who share a strong focus on cash and capital as scarce resources. They are expected to extract superior returns from all the capital deployed in their businesses, and must consider cash as a key and objective measurement of their financial performance. Ability to quickly reallocate underperforming capital is also key.

Astorg will make sure before investing that such management guidelines are shared within the management of a targeted company.

Although we are not a sectorially focused organization, Astorg Partners enjoys an in-depth experience in Healthcare (services, diagnosis, pharmaceuticals), Professional Services (outsourcing, high added value professional services, rental) and Retail (retail sales and B to B).