Egeria, Gilde spin-out targets small-cap buyouts – Exclusive

Two seasoned dealmakers of the Dutch mid-market have spun out to go ‘back in time’ and invest in Dutch small-caps.

Floris Muijser and Jeroen Nienhaus, formerly of Dutch mid-market firms Egeria and Gilde respectively, have established Auxilium Capital to invest in small businesses.

The two deal-makers will invest in businesses in the Netherlands with earnings of more than €1 million and enterprise values of up to €20 million. Co-founder Muijser described the approach as going “back in time” for the pair, as this is the size of deal they had focused on at the turn of the century.

Muijser and Nienhaus originally worked together for three years at longstanding Dutch private equity firm Gilde Equity Management Benelux (known then as Gilde Participaties). Muijser subsequently left to join Egeria, another established firm in the Dutch mid-market, where he spent 11 years, latterly as partner. Nienhaus meanwhile remained with Gilde for 14 years, also latterly as partner.

One of the reasons for making the leap, according to Muijser, was the desire to return to a segment of the market with more bilateral deal processes, rather than competitive auctions which are becoming increasingly commonplace in the intermediated Dutch mid-market.

The pair will raise capital on a deal-by-deal basis from families and entrepreneurs in their network, as well as investing their own capital, and are still searching for their first deal.