Corporate financing - NOVI

CORPORATE FINANCE - NOVI

Since July 2015, Idinvest Partners has a team dedicated to managing the new Novi 2 fund on behalf of 24 institutional investors.

A key component in reviving investment in France, Novi is an investment fund created by the Caisse des Dépôts et Consignations' (CDC) initiative to
finance innovative and growing SMEs.

It
offers access to:
  • debt financing, and/or
  • quasi-equity financing, and/or
  • equity financing




The Novi fund is able to support eligible companies over a period of 21 years.

To this end, Novi 2 is aimed at all French companies meeting the following criteria:

  • Industrial and service sector businesses
  • Sales of between €30 million and €200 million
  • Established for at least five years
  • Positive earnings for the past three years
  • Leadership teams with an equity stake in the company

With the following additional solid financial fundamentals:

  • Banque de France (BdF) rating of less than 4(1)
  • Net debt to EBITDA ratio of less than 3.5x (including Novi 2 financing)
  • Net debt to equity ratio of less than 1.5x (including Novi 2 financing)
  • EBITDA to interest coverage ratio of over 3.0x

    (1) By exception, companies with a BdF rating of 5 may be accepted where there is potential for this to improve to 4 once Novi 2 has completed its investment.


Idinvest’s investment team is particularly interested in the nine sectors covered by the Nouvelle France Industrielle industrial regeneration plan.


SELECTION OF PORTFOLIO COMPANIES



News