«No good decision was ever made in a swivel chair.»
(George S. Patton Jr.)
Inflection Point Investing
fronttrail makes direct equity investments (Direktinvestitionen) into mature, profitable European software growth companies. We often enter as the first institutional investor in bootstrapped, founder-led organizations. Targets have been in business for 5-20 years, already achieve revenues of €5-30m and have one or more software technology products that are in operation with several large enterprises and have thus been validated by the market.
frontrail’s main geographic investment area is Western Europe, i.e. Germany, Austria and Switzerland (DACH), France, the Netherlands, Belgium and Luxembourg (Benelux), the United Kingdom and Ireland, Italy, Spain and Portugal (Iberia), as well as Denmark, Norway, Sweden and Finland (Scandinavia).
fronttrail’s growth capital (Wachstumskapital) transactions include primary and/or secondary equity investments (Beteiligungskapital), ranging between €5-20m and beyond. Holding periods are typically between 3-5 years. We offer well-designed deal frameworks that can be partially adjusted to the individual needs of the target and its individuals.
Active Ownership Approach
fronttrail takes minority (Minderheitsanteile) or majority (Mehrheitsanteile) positions and acts as an active investor represented on the board (Aufsichtsrat) of a target. We empower the companies we work with through deep industrial insight, knowledge and connections on a global basis.
Flexible Use Cases
At fronttrail, primary transactions (Kapitalerhöhungen) typically go into the expansion of the business through the increase of the sales and marketing organization and the extension of international operations (Expansionskapital), as well as to targeted add-on acquisitions (Akquisitionskapital). Secondary transactions (Sekundärmarkt-Transaktionen) provide liquidity to current shareholders through the full or partial replacement of their existing shares in form of a secondary direct (Ersatzkapital). To a certain extent, fronttrail also provides capital for management buy-outs (MBO) and buy-ins (MBI) (Unternehmensauskauf) and (debt) restructurings (Restrukturierungen).
Sector Driven Program
Within the overall software industry, fronttrail has a particular focus on financial technologies (FinTech), WealthTech, InsurTech, PropTech, RegTech, governance, risk & compliance (GRC), content management (CMS), marketing automation & CRM, digital commerce, big data, analytics and business intelligence (BI), artificial intelligence (AI), augmented reality (AR), social media, mobile apps and gaming, cloud computing, open source, computer aided design and manufacturing (CAD/CAM), supply chain management (SCM), human capital management (HR), as well as infrastructure and security software solutions, including enabling software technologies. Business models may contain selling traditional software perpetual and/or term licenses, as well as offering modern internet, cloud, Software as a Service (SaaS), Platform as a Service (PaaS) and subscription models.