As 2024 draws to a close, we're thrilled to share Tioopo Capital's first Founders' Letter, offering insights into the evolving private equity landscape in the UK and France.
Tioopo Capital Founders' Letter, 2024 Edition
Full annual letter
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2024 marked a pivotal year for the European private equity industry. As capital costs normalized and valuation discipline returned to the market, we observed a fundamental shift in what drives returns, from multiple expansion to operational improvement.
This first Founders' Letter shares our perspective on the structural changes reshaping our industry, our investment thesis for small and mid-sized European businesses, and the opportunities we see in the years ahead.
Three convictions for the next cycle
- Niche industrial businesses are undervalued. Established companies with technical know-how, loyal customer bases and pricing power continue to trade at attractive multiples relative to their cash generation.
- Operational engagement is the differentiator. Passive ownership has reached its limits in a normalized rate environment. Active operational support, hiring, technology adoption, geographic expansion, is now central to value creation.
- Long holding periods favor patient capital. The businesses we back take years to transform. Permanent capital structures and aligned LPs allow us to think in decades, not exit windows.
Read the full letter for our detailed views, market data, and outlook for 2025.