Silverfleet Capital invests in Collectia
Collectia is a provider of debt collection and debt purchase services with more than 13,000 corporate customers in Denmark, Sweden, Norway and Germany.
Munich, London, Brøndby — European private equity firm Silverfleet Capital has acquired a majority stake in Collectia A/S, a credit management service provider based in Brøndby, Denmark. Details of the transaction will not be disclosed.
Collectia was founded in 1998 and today is a rapidly growing provider of debt collection and debt purchase services. Headquartered in Brøndby, the company operates mainly in the Danish market and has also established a smaller market presence in Sweden, Norway and Germany. With more than 175 employees, Collectia currently handles more than 600,000 active cases for approximately 13,000 corporate clients.
Collectia has a mature proprietary technology platform as well as an extensive credit database and advanced data analytics capabilities. This makes Collectia a clearly differentiated company with the potential to gain additional market share in both existing and new markets. In recent years, the company has diversified its service portfolio: In addition to its core business of debt collection services, it has expanded its receivables purchasing activities and launched a new credit rating information service in Denmark. Collectia has also made several acquisitions to expand its presence in Scandinavia and Germany.
Silverfleet Capital has many years of experience in financial services and focuses on leveraging advantageous macro dynamics. In Collectia’s case, increasing regulation in Denmark and across the EU is driving the outsourcing of debt collection processes to specialized service providers; also, Collectia expects that additional, new regulation in the coming years will lead to an increasing volume of problem loan and debtor portfolios that banks and companies will resell to specialists.
With the investment from Silverfleet, Collectia intends to further accelerate its growth course. The aim is to continue to draw on the excellent technology-based processes in order to further develop the Collection Solutions area. The receivables purchasing area is to be expanded, and the company’s international expansion is to be further driven by targeted vertical niche acquisitions.
Mark Piasecki (photo), Partner at Silverfleet Capital, says: “With Collectia, we have gained a technologically savvy company with a core business in Denmark as a partner that offers many opportunities for growth on both a national and international level. We look forward to working closely with Collectia’s experienced management team and to building on past successes and realizing the company’s potential together.”
Christian la Cour Valentin, CEO of Collectia, adds: “Silverfleet Capital shares our strategic vision for the future of Collectia and understands where the particular strengths of our company lie. Together with its experience, capital strength and network, the company is an ideal partner to expand our growth strategy.”
Collectia marks the eleventh investment for Silverfleet Capital from the current fund. The Silverfleet portfolio includes companies from the UK, France, Benelux, Scandinavia and Germany.
At Silverfleet Capital, Mark Piasecki, Karl Eidem, Robert Knight, Johan Boork and Farhad Tatar were responsible for the current transaction. The investment company was advised on the transaction by Houlihan Lokey (M&A), Deloitte (Debt, Commercial, Financial & Tax), Bruun & Hjejle, Travers Smith and McFarlanes (all Legal), Rud Pedersen (Regulatory), BearingPoint(IT) and Quantum Data Analytics (Financial). Debt financing was provided by Alcentra and Sydbank.
About Silverfleet Capital
Silverfleet Capital has been active as a private equity investor in the European mid-market for more than 30 years. The 32-strong investment team works from Munich, London, Paris, Stockholm and Amsterdam.
Scandinavia is one of the geographical target regions for Silverfleet Capital; the company is particularly active in Denmark. The investment in Collectia in 2020 marks Silverfleet Capital’s fourth platform investment in Denmark since 2013; other recent transactions include the successful exits of Phase One in 2019 and Cimbria in 2016.
Ten investments have already been made from the second independent fund closed in 2015 with a volume of 870 million euros: The Masai Clothing Company, a wholesaler and retailer of women’s fashion headquartered in Denmark; Coventya, a French developer of specialty chemicals; Sigma Components, a UK-based manufacturer of precision components for civil aviation; Lifetime Training, a provider of training programs based in the United Kingdom; Pumpenfabrik Wangen, a manufacturer of specialty pumps based in Germany; Riviera Travel, an escorted group tour and cruise operator based in the United Kingdom; 7days, a German supplier of medical workwear; Prefere Resins, a leading phenolic and amino resin manufacturer in Europe, CARE Fertility, a leading operator of fertility clinics in the United Kingdom, and BOA CoreDux, a leading designer and manufacturer of custom, high-purity metal hoses for critical industrial applications.
Silverfleet Capital also maintains an investment team specializing in smaller middle-market companies, which has already made two successful investments: STAXS Contamination Control Experts, a leading supplier of cleanroom accessories in the Benelux (completed in January 2019), and Microgen Financial Systems, a leading provider of trust and fund administration software for the trust and corporate services industry.
Silverfleet achieves value growth by investing in companies in its core sectors that benefit from specific, long-term trends. Silverfleet supports these companies in their future growth strategies. As part of these strategies, investments are made in organic growth drivers, internationalization, strategic acquisitions or operational improvement processes. Since 2004, Silverfleet Capital has invested €2.1 billion in 32 companies.
Silverfleet specializes in four key industries: Business and Financial Services, Healthcare, Manufacturing, and Retail and Consumer Goods.
Since 2004, the private equity investor has invested 30% of its assets in companies headquartered in the DACH region, 33% in the UK and Ireland, 18% in Scandinavia, and 15% in France and the Benelux (includes an investment sourced in Belgium and headquartered in the US).
Silverfleet Capital has a solid investment track record. Most recently, Silverfleet sold Phase One, a leading technology company in the field of high-end digital camera systems and for image processing software (investment multiple 4.6x); Ipes, a leading provider of outsourcing services for European private equity companies (investment multiple 3.7x); CCC, one of the leading BPO services providers in Europe; and Cimbria, a Danish manufacturer of agricultural equipment (investment multiple cannot be disclosed for legal reasons); Kalle, a German manufacturer of artificial sausage sticks (investment multiple 3.5x); OFFICE, a UK-based footwear retailer (investment multiple 3.4x); and Aesica, a leading pharmaceutical CDMO company (investment multiple 3.3x).