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Equity Story

Of unicorns and zebras

 

Start-ups that are valued at more than one billion often proudly call themselves unicorns due to their rarity. They focus almost exclusively on growth in order to achieve a monopoly position in their defined market in the shortest possible time. Other aspects such as employee satisfaction or social impact count for little, which often leads to a bubble forming. It is not uncommon for it to turn out that the billion-euro value is as much a fable as the company itself.

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In contrast, companies that focus on sustainability and cooperation are known as zebras. They want to realise relevant solutions for the social challenges of the 21st century with innovative, socio-ecological approaches. However, they often lack the clout, attention - and sometimes even a touch of megalomania - to change the world. Yet it is precisely these companies that should grow ambitiously and sustainably, scale consistently and develop new technologies. In this case, "zebras" generate above-average returns with manageable risks.

The traditional German SME sector, including its numerous hidden champions, has been an incredible success story in recent decades. Now there is an enormous innovation backlog and a looming loss of relevance, particularly in the area of digitalisation. 

Our contribution

Maffei & Co. invests in industries that have been or will be particularly affected by the two megatrends of sustainability and digitalization in recent and future years. ​

Maffei & Co. usually acquires entrepreneurial (majority) investments in order to use its expertise in the areas of management, capital and technology to build the next generation of (hidden) champions by grouping these investments thematically under the umbrella of a holding company. All group companies are supported by the strategic investments m.partners GmbH (management consulting) and Communicatio GmbH (technology). All opportunities and risks arise from this entrepreneurial approach: On the one hand, an above-average return can be achieved through early and intensive support of innovations - but there is also the risk that an idea cannot establish itself on the market. ​

 

The aim is the capital market viability of the individual thematic pillars, which requires a high degree of autonomy from Maffei & Co.; for this reason, Maffei & Co. does not consolidate the individual theme holding companies in its balance sheet. Maffei & Co. usually has a controlling share in the holding companies, but this does not have to be a majority. ​

 

Maffei & Co. achieves risk diversification through very different business models. When investing on the stock market, many investors prefer to focus on focused individual stocks and spread the risk themselves in their portfolio. But there is one advantage that a diversified portfolio cannot offer: the companies within the group can benefit from their shared know-how.

 

Maffei & Co. has a generational perspective and no exit strategies for its investments and is developing "equity for the next generation". ​

 

As a fair partner, Maffei & Co. takes risks and shares entrepreneurial responsibility. Risks and complexity are personally managed proactively instead of (supposedly) avoiding, delegating or outsourcing them. ​

 

This approach is deliberately entirely in the tradition of the private banks at the end of the 19th century, which created the foundations of our current prosperity with entrepreneurial financing, the development of technologically innovative companies and the driving of economic renewal processes. This is also the origin of our name: Maffei & Co.

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