About
SARMIS

Approach

SARMIS has a country-focused approach, in a region that we know best and where we have established a strong network and track record. We look to invest in majority equity stakes alongside entrepreneurs in mid-market high-growth entrepreneurial companies, across industries, as part of proprietary / non-auction processes, where we can create true value through our hands-on, operational involvement, while taking advantage of continuous collaboration with strong management teams.

Deal Types

We focus on cash-in majority buyouts in market-leading companies with a proven business model, high barriers to entry and strong management teams, aiming to invest €15-30m per transaction (larger deals can be pursued thanks to our institutional backers who are willing to co-invest).

We consider the lower mid-market as the sweet spot given its size / depth, fragmented nature, higher growth potential (not accompanied by directly higher risk), level of professionalisation and need for partner capital.

Geography

The main focus of our investments is Romania, one of the largest economies in CEE, where the SARMIS head office is located. In addition, we are also looking opportunistically at adjacent markets for relevant investment opportunities, whether for standalone acquisitions or bolt-ons.

We believe the target countries provide a very attractive investment environment due to the convergence potential to Western European standards. Romania and the surrounding region have a stable economy and financial system, having emerged from a period of strong growth across relevant macroeconomic indicators: increasing GDP, low public debt, increasing disposable income and highly skilled labor. This allows for an attractive PE market that is far from saturated and offers plenty of opportunities for value creation, coupled with an ongoing imbalance and a relative lack of professional capital to support local businesses wanting to take the next step in their journey (be it founder transition, market consolidation and/or internationalisation).

Continued investment in high-potential sectors will be paramount to enabling further growth across the region, especially in a post-COVID context. The focus geography can benefit from favourable positioning on the border of East and West, low wages for well-skilled workforce, attractive real estate costs, and continual improvement in connectivity to developed markets.

Sectors

We target investments in domestic-focused, high growth industries that typically benefit from the catch-up potential to Western Europe due to increasing disposable incomes and changing consumer habits in the region. We are generally sector-agnostic, looking for the best opportunities to create value and shape the businesses we invest in into becoming local / regional champions in their fields, such as: IT&C, agriculture, healthcare, outsourcing / shared services, manufacturing, retail & consumer.