Entrepreneurial families as investors
Syngroh Capital is the investment company of the founding family of the globally successful sanitation company Hansgrohe SE, with which the Klaus Grohe family makes direct investments in medium-sized companies. We deliberately do not speak of a family office, but of an investment company, because Syngroh Capital exclusively comprises the direct investment activities and has a capital commitment of 100 million euros. Unlike unit-linked private equity investments, however, there are no fixed investment and holding periods, and the family can shape the investment strategy with its understanding of values. Borrowed capital can, but does not have to be used. The best of both worlds, so to speak.
Direct investments are, of course, one way of generating returns from family assets in the low-interest environment and increasing them for future generations. However, the Grohe family is concerned with much more than purely financial interests. Over three generations, the family has led Hansgrohe from its founding as a craftsman’s business to a global company with more than one billion in sales, transforming itself from a majority shareholder to a minority shareholder.
After finally retiring completely from operational responsibility in 2016, they intend to actively contribute this wealth of entrepreneurial experience at Syngroh Capital, both in ongoing dialog with management and on the companies’ advisory boards. This goes down well with entrepreneurs because someone who has handed over management of the company to non-family members has a completely different approach to such transitions than a purely financial investor.
Presumably, this is simply part of the entrepreneurial DNA. All members of the Klaus Grohe family have held management positions at Hansgrohe or other companies. In their professions and functions, they have spent years passionately driving innovation, developing products, building companies and structures. Now they want to be just as actively involved and work with entrepreneurs who embody the same will to shape the future. As a shareholder, we help identify growth opportunities and promote them with the know-how of a strategist and the capital of a financial investor.
About Robert Clausen
Robert L. Clausen has been Managing Partner of Syngroh Capital’s investment advisory company, Syngroh Advisory GmbH, since the beginning of 2018. Previously, he advised clients on the acquisition, sale or financing of companies in more than 70 transactions — among others for Deloitte & Touche BNP Paribas, Lincoln International and Credit Suisse First Boston. He has known the Klaus Grohe family for around two decades and has accompanied its members in a large number of strategic discussions and transactions.