Our Investment Approach

Investment Approach
Arx is focused on buy-out and growth capital transactions. Our investment focus is mid-sized companies in Central & Eastern Europe.

Arx typically targets companies with a history of increasing sales and profit in industry sectors with attractive underlying characteristics. Our goal is to support owners and managers in releasing growth potential and to rapidly develop Central & Eastern European businesses. Our firm also provides financing to entrepreneurially-minded managers in order to realize management buy-out and management buy-in (MBO & MBI) projects.

At Arx we also pride ourselves on our ability to create flexible investment solutions for owner-managers. We tailor our solutions in order to satisfy the needs of business owners who may be approaching gradual / phased succession situations. Most of the businesses we acquire are management or family-owned enterprises, which often require complex and discrete financing solutions. Our firm is experienced in providing such solutions.

Analysis
Attention to detail is fundamental to our approach. We seek to deeply and rapidly understand a company prior to making an investment. The main driver for this approach is Arx's desire to add value to each portfolio company post-investment. For example, we seek to provide relevant introductions within our international network, we contribute to strategy formulation, and we occasionally assist in identifying and completing add-on acquisitions for our portfolio companies.

Aligned Incentives
As a locally managed independent partnership, Arx's structure is designed to facilitate timely and efficient responses to business proposals. We are purely focused on increasing shareholder value for the investors in our funds and correspondingly for the partners and co-shareholders in each portfolio company. Our core objective is value-creation and this approach is transparent to all parties.

Arx Team
Arx's team of investment professionals consists of individuals with differing backgrounds, possessing a complementary blend of skills and expertise. Our team members are highly respected in their relevant markets. We seek to build a high degree of mutual trust and integrity with all of our business partners such as business owners, managers, intermediaries, banks and advisors. Arx is a long-term player on the Central & Eastern European private equity landscape and our references in the market reflect years of successful business partnerships.

Support
We play an active role in supporting our portfolio companies with strategic advice, access to international contacts, industry expertise and eventual exit planning.