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OUR INVESTMENT APPROACH

Stavropoleos Capital approaches investing with a long-term mindset and a genuine commitment to supporting entrepreneurs in building durable, well-governed businesses.

We take full responsibility for the capital entrusted to us by our investors, prioritizing discipline, capital preservation, and aligned long-term returns.

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Stavropoleos Capital operates as an independent sponsor, pursuing a disciplined, deal-by-deal private equity strategy. We generate proprietary deal flow by sourcing opportunities directly and selectively, without relying on brokers, auctions, or competitive processes. Our focus is on careful selection rather than volume.

We invest in small and lower mid-market businesses, typically with revenues between €2 million and €25 million, that demonstrate a proven operating history, consistent profitability, and resilience across market cycles. We prioritize businesses with at least 10 years of market presence, a positive five-year track record, and sustainable margins supported by healthy cash flow and conservative balance sheets.

We are sector agnostic, with a preference for businesses where brand strength, operating execution, and scalability are more important than asset intensity. We avoid capital-intensive models and focus on companies with market-validated brands that can serve as platforms for national and international expansion, including growth through distribution, partnerships, and brand-led strategies rather than heavy physical build-out.

We typically seek to acquire majority ownership positions (minimum 51%), enabling us to maintain strategic control and actively support the professionalization, governance, and long-term growth of our portfolio companies. In selected situations, we are open to significant minority investments where alignment, governance rights, and value creation levers are clearly defined. We are also prepared to pursue 100% acquisitions in succession-driven situations, implementing structured transition periods to establish new management and governance structures, including formal boards.

We partner with proven, high-performing founders and management teams who continue to lead the business post-transaction. Founder involvement for a minimum of three years is a key element of our investment philosophy, ensuring continuity and alignment, while clear governance frameworks and succession planning provide long-term stability.

Our investment horizon is long-term, with a minimum holding period of approximately five years, allowing us to fully execute operational, strategic, and governance initiatives. At exit, we are committed to providing liquidity solutions for our capital partners, including the partial or full acquisition of their ownership interests, ensuring aligned outcomes and flexibility across investment cycles.

As an independent sponsor, we work closely with founders, management teams, and capital partners to structure investments that are aligned, flexible, and tailored to each opportunity, with a clear focus on long-term value creation driven by operational excellence rather than financial engineering.

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Investment Criteria

Sourcing & Strategy

  • Proprietary Sourcing: We generate deal flow exclusively through direct and selective outreach, avoiding brokers, auctions, or competitive bidding processes.
  • Sector Agnostic: We invest across diverse industries, prioritizing business models where brand strength and operational execution outweigh asset intensity.
  • Investment Horizon: Long-term commitment with a minimum holding period of 5 years (typically 7–10 years) to fully execute strategic and governance initiatives.
  • Geography: Romania, with selective regional expansion

Financial Profile

  • Revenue: €2M – €25M (Small & Mid-market SMEs)
  • Profitability: Minimum 5% Net Profit margin
  • Historical Performance: Positive track record with proven growth and resilience over the last 5 years
  • Business Maturity: Minimum 10 years of market presence

Transaction Structure

  • Equity Stake: Primary focus on Majority (51%+)
  • Strategic Minority: Open to significant minority stakes (min. 35%) in specific cases
  • Succession Solution: Open to 100% acquisitions in founder-led businesses without a succession plan.
  • Deal Type: Independent Sponsor model (Deal-by-Deal)

Operational & Asset Profile

  • Capital Intensity: Focused on Low CAPEX models; businesses that do not require heavy reinvestment in machinery or heavy infrastructure to scale
  • Solvency: Healthy debt-to-equity ratio; ability to cover obligations through organic cash flow
  • Brand Strength: Validated market presence with high customer loyalty

Management & Succession

  • Founder-Led Partnership: Partnering with proven, high-performing founders who continue to lead the business post-transaction, with a minimum three-year commitment and a clear governance framework to ensure continuity and optional succession.
  • Full Exit: In 100% buyout situations, a minimum 2-year transition period is required to establish new management and governance structures, ensuring operational continuity and long-term stability.

Scalability

  • Organic Growth Acceleration: Driving revenue and margin expansion by leveraging existing operations, pricing power, and market positioning.
  • Strategic M&A Execution: Executing disciplined buy-and-build strategies through targeted acquisitions that strengthen market position, expand capabilities, and accelerate value creation.
  • National & Cross-Border Expansion: Scaling through domestic consolidation and selective entry into international markets with attractive fundamentals.
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Our Investment Process

1

Deal Origination

Proprietary sourcing aligned with defined investment criteria

2

Underwriting & LOI

Initial underwriting, valuation, and indicative Letter of Intent

3

Due Diligence

Integrated financial, commercial, and legal due diligence

4

Capital Structuring

Transaction structuring and alignment with capital partners

5

Transaction Execution

Execution of definitive agreements and closing

6

Active Ownership

Post-closing value creation and governance implementation

7

Exit & Realization

Strategic exit and capital realization