Novastone Partners AG

What they fund

• Operator-Led Buyouts — Capital for mid-career operators to acquire and manage SMEs, prioritizing leadership over target identification [1].
• Succession Solutions — Funding for entrepreneurs to acquire existing businesses, providing exit routes for current owners [1].
• Value Creation — Post-acquisition growth through operational excellence, financial optimization, and digitalization [1].
• Lower-Mid Market — Focus on smaller, privately held companies with enterprise values in the lower-mid range [1].

Investment thesis

Novastone Partners operates an Operator-Led Buyout (OLBO) model that pairs capital with experienced, mid-career operators to acquire and grow privately held SMEs [1]. The firm prioritizes finding talented entrepreneurs first and identifying target companies second, ensuring leadership is in place before acquisition [1]. This approach provides succession solutions for existing business owners by connecting them with capable, ambitious successors [1]. The strategy focuses on value creation through operational excellence, financial optimization, and digitalization post-acquisition [1].

Value add

Novastone Partners provides a structured search fund program, offering support to searchers transitioning into business ownership [1]. The firm connects entrepreneurs with existing business owners seeking succession solutions, facilitating mutual benefit and growth [1]. Co-investors are presented with sound investment opportunities backed by experienced operators [1].

Fit verdict: Ideal for operators seeking to acquire and grow SMEs, and for owners looking for succession solutions.

Founder diligence script:

• What is the typical timeline from searcher identification to acquisition?
• How does Novastone support post-acquisition operational improvements?
• What is the expected equity split between the operator and the firm?
• How does the firm handle conflicts between operator and co-investor interests?

Portfolio focus

• Global SME Portfolio — 29 companies across 11 countries and 11 industries, including Paul Mathew Transport (UK), Garner Osborne Circuits (Canada), and Savaria Ipartechnika (Hungary) [1].
• Logistics & Transport — Active investments in regional logistics platforms, such as Green Logistics' strategic alliance with Doeleman Logistiek [1].
• Industrial & Manufacturing — Portfolio companies like Chapter One Sportswear and Formeds demonstrate a focus on traditional manufacturing and apparel sectors [1].
• Health & Supplements — The firm's focus areas include health and supplements, aligning with its broader lower-mid market SME strategy [1].

Notable investments & exits

• Foo Seng — Successful exit through the formation of Alma [1].
• Formeds — Completed exit with the sale of the company [1].
• Chapter One Sportswear — Successfully sold the portfolio company [1].
• Paul Mathew Transport — Acquired by NCA entrepreneur Eyal Kaplan, indicating a successful transition [1].

Strategic implications

Novastone's OLBO model addresses a critical market gap in SME succession, positioning it as a key player in the lower-mid market. The firm's global portfolio and diverse industry focus suggest a scalable, repeatable investment thesis. Succession challenges in Europe and the US present a significant opportunity for Novastone to expand its operator network and deal flow.

Where they could go further

Expand the operator network in high-growth sectors like health and supplements to capture more value. Develop a stronger brand presence in the US market to attract more operators and co-investors. Enhance post-acquisition support services to improve portfolio company performance and exit outcomes. Leverage the global portfolio to facilitate cross-border acquisitions and strategic alliances.