Beyond Capital Partners: Driving Sustainable Growth in the DACH Region

Beyond Capital Partners (BCP), an owner-managed private equity firm based in Frankfurt am Main, Germany, exemplifies a commitment to sustainable growth, innovation, and entrepreneurial excellence. With a focus on ESG-oriented investment strategies, BCP has become a leading player in the small-to-medium enterprise (SME) market across German-speaking countries. Since its founding in 2015, the firm has grown its portfolio and reputation, achieving significant milestones in fund management, operational excellence, and social responsibility.

A Decade of Entrepreneurial Excellence

Founded by three entrepreneurial visionaries, Beyond Capital Partners focuses on acquiring majority shareholdings in well-performing small-to-medium-sized companies with revenues between €10mn and €50mn, and EBITDA ranging from €1.5mn to €7.5mn. These investments span diverse sectors such as B2B services, IT services, software, healthcare and well-being, lifestyle, and entertainment.

BCP has built a reputation as a hands-on investor, partnering with portfolio companies to navigate the challenges posed by technological, demographic, and social changes. The firm’s philosophy is rooted in its entrepreneurial spirit, where it positions itself as a trusted partner, leveraging pragmatic advice, extensive industry experience, and ample capital to support growth over the long term.

BCP’s team, which has expanded to 16 professionals, embodies this ethos. The firm has established itself as a key player in the DACH region’s lower-mid-market private equity segment, with a portfolio that includes 13 platform acquisitions, 14 add-ons, and over 100 additional acquisitions through roll-ups.

Strategic Fund Management

BCP’s ability to attract top-tier institutional investors is a testament to its strategic acumen and strong performance. Over the years, the firm has successfully launched three funds, each achieving significant milestones:

• Fund I (2017): With an initial closing of €25.5mn from family office investors, Fund I delivered a strong performance, achieving a 1.5x multiple of invested capital (MOIC) by 2019.
• Fund II (2021): Closed at a hard cap of €115.2mn, Fund II currently holds a 1.9x MOIC with a DPI of 0.23x, reflecting its steady and conservative growth trajectory.
• Fund III (2024): Marking a significant milestone, Fund III closed at €180.7mn, making it one of the few successfully raised funds in a challenging fundraising environment. Institutional investors, including the European Investment Fund and other leading fund-of-funds, re-upped their commitments, further solidifying BCP’s status as an established general partner (GP).

“Good entrepreneurship is the foundation of every successful business and ever since has been a core pillar of Beyond Capital Partners’ investment philosophy.”

– Christoph D Kauter Managing Partner and Founder of Beyond Capital Partners

The firm’s founders, team members, and close networks have contributed over 10 percent of the total capital commitments across these funds, underscoring their belief in “real skin in the game” as a key alignment mechanism for investor confidence.

Integrating ESG Principles Across the Investment Lifecycle

At the heart of BCP’s strategy lies a robust commitment to Environmental, Social, and Governance (ESG) principles. The firm integrates ESG criteria across all stages of its investment cycle, from sourcing and due diligence to post-acquisition and exit strategies.

As an Article 8+ fund under the Sustainable Finance Disclosure Regulation (SFDR), Fund III promotes ESG characteristics and allocates a percentage of its committed capital to sustainable business models. This aligns BCP’s investments with the United Nations Sustainable Development Goals (SDGs), including good health and well-being, quality education, decent work and economic growth, reduced inequalities, and climate action.

BCP’s “ESG Along the Investment Cycle” programme exemplifies its commitment to sustainability. This initiative includes:

• Sourcing and Due Diligence: ESG objectives are embedded in the firm’s investment criteria, supported by comprehensive internal and external ESG assessments.
• Monitoring and Reporting: A digitalised ESG reporting platform tracks ESG indicators before and after acquisition, providing transparency and enabling portfolio companies to develop targeted ESG roadmaps.
• Value Creation: ESG profiles are used to evaluate risk, development opportunities, and value creation, aligning each company’s goals with BCP’s broader sustainability objectives.

A Culture of Responsible Investment

In 2023, BCP further enhanced its ESG strategy by aligning its entire investment cycle with the Principles for Responsible Investment (PRI). The firm has also joined the United Nations Global Compact, reinforcing its commitment to ethical business practices and sustainable growth.
By adopting tools like internal ESG maturity assessments and mandatory annual reporting for portfolio companies, BCP ensures that sustainability is not only a compliance measure but a driver of value creation.

Fostering Entrepreneurial Success

BCP’s entrepreneurial philosophy extends beyond its internal operations. The firm partners closely with the founders and management teams of its portfolio companies, providing strategic guidance and capital to fuel growth. This approach has resulted in remarkable success stories, with portfolio companies achieving increased operational efficiency, market expansion, and long-term value creation.

One of BCP’s key strengths is its ability to adapt to the evolving needs of mid-cap companies in a rapidly changing landscape. The firm’s focus on asset-light business models in high-growth sectors ensures its portfolio remains resilient and competitive.

Overcoming Challenges with Pragmatism

The lower-mid-market private equity space is not without its challenges. BCP has successfully navigated geopolitical uncertainties, demographic shifts, and industry disruptions by fostering a culture of resilience and adaptability.

The firm’s hands-on approach and long-term perspective enable it to identify opportunities within these challenges. For instance, infrastructure development and technological innovation are not only hurdles but areas where BCP can drive value creation and enhance portfolio performance.

A Bright Future Ahead

Looking ahead, Beyond Capital Partners is well-positioned to build on its success. The firm aims to expand its geographical footprint, diversify its product offerings, and continue integrating cutting-edge technology into its operations.

BCP’s commitment to ESG principles will remain a cornerstone of its strategy, ensuring sustainable growth for both the firm and its portfolio companies. By aligning its investments with global sustainability goals, BCP is not only driving financial returns but also contributing to a more inclusive and responsible business landscape.

With nearly a decade of experience, a proven track record, and a forward-looking strategy, Beyond Capital Partners continues to set the standard for excellence in private equity. For investors, entrepreneurs, and stakeholders, the firm represents a trusted partner dedicated to driving innovation, sustainability, and long-term value creation in the DACH region and beyond.