Innovation Strategy
Focused on European growth equity, providing exposure to technology-enabled businesses by investing in locally-established, capital-efficient leaders with global aspirations.
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Key strategy features:
€300m
fundraising target
Thematic investing
focused on technology-enabled business models
Next gen GPs
blended with well-established partners
Pan-Europe
regional focus
Article 8
EU SFDR
Growth capital
providing exposure to European innovators
Why Federated Hermes Innovation Strategy?
Typical target company profile
Building portfolios of high-quality, resilient technology companies
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Strong revenue growth
30%+, oftentimes 50-80%
Mission critical SaaS
Reoccuring revenues with high margins
Capital efficient
Profitable, or clear path to profitability
Enterprise value
<€250m at entry
Thematic investing
Targeting innovative technologies and business models, focusing on non-cyclical sub-themes
- Fintech & RegTech
- Digital enterprise architecture
- Digitalisation of life sciences
- Data & cyber-security
- E-commerce & digital marketing
- Physical robots, IoT & VR
- Future of work and education
- New age consumer
- Mental health
- Next-gen healthcare delivery
- Silver economy & senior consumer
- Polarisation of consumption
Target performance
The Innovation Strategy provides access to two separate vehicles:
Please note targets, which are net of fees, are not guaranteed.
Pan-European focus with strong deal flow
~40%
of HINF companies’ revenues are generated outside Europe1
30-40
co-investments reviewed each quarter
20+
global GP relationships leveraging 32 years of fund investment
1 HINF I revenues were generated mostly in the US, LATAM and other countries outside Europe. Sales outside the EU refers to latest available geographic revenue split as shared by GPs or portfolio companies including estimates. HINF 1 is now closed to new investors.
Latest insights
We outline why we expect direct lending and real estate debt to perform strongly.
Article
14 November 2024
The private equity industry is undergoing a mindset shift with regards to returns.
Developing a clear and bespoke exit strategy is both a science and an art.
INNOVATION STRATEGY
A growth equity strategy focused on European innovators
Connect with us to find out more:
IR team: [email protected]
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For enhanced outcomes
BD014285
