Flex Equity
Europe’s mid-market offers attractive fundamentals like strong cash flow, defensive sector presence, and growth potential. Many of these opportunities can be accessed through Flex Equity solutions, providing flexible, tailored financing for this vibrant and less crowded segment.
Key figures
Our approach
Local sourcing capability
The team has built long-term relationships with an ecosystem of deal origination sources. We have a local presence through our offices across Europe, as well as partners around the world. Our sector expertise allows us to position ourselves as a preferred partner early in the transaction process.
Importance of primary deals
We support companies during their first partnership with a fund - education on the transaction, development support, establishment of key indicators, strengthening governance, and decision-making assistance on strategic issues
Strong sectoral verticals
The team has developed strong expertise in resilient sectors such as technology, healthcare, financial services, and education. This expertise enables us to best support companies in their development projects.
What is Flex Equity?
Intersection
Flexible Equity – commonly referred to as Flex Equity – sits at the intersection of traditional equity and bond financing. It provides financing solutions with hybrid characteristics – often structured as preferred equity, convertible bond or structured equity – and adapted to the needs of the company.
Innovation
Flex Equity provides innovative solutions to some of the traditional financial challenges faced by companies. One of the primary issues with traditional debt is the burden of cash flow and debt servicing, especially during periods of growth or uncertainty.
Flexibility
Conventional equity structures can sometimes lead to misalignment between founders and investors. Flex Equity addresses this by offering a more flexible financing approach that aligns incentives through mechanisms such as performance-based rewards or tailored conversion terms.
Summary
For companies, Flex Equity offers bespoke capital solutions adapted to their specific needs.
Growth-oriented businesses are increasingly turning to Flex Equity solutions seeking non-dilutive or minimally dilutive capital.
For investors, Flex Equity is designed to offer a return profile blending equity-like upside and bond-like downside protection.
Disclaimer
This marketing communication does not constitute on the part of AXA Investment Managers a solicitation or investment, legal or tax advice. This material does not contain sufficient information to support an investment decision.
Due to its simplification, this document is partial and opinions, estimates and forecasts herein are subjective and subject to change without notice. There is no guarantee forecasts made will come to pass. Data, figures, declarations, analysis, predictions and other information in this document is provided based on our state of knowledge at the time of creation of this document. Whilst every care is taken, no representation or warranty (including liability towards third parties), express or implied, is made as to the accuracy, reliability or completeness of the information contained herein. Reliance upon information in this material is at the sole discretion of the recipient. This material does not contain sufficient information to support an investment decision.