Expertise

The investment division selects assets that meet the needs of VGGF Holdings and its subsidiaries. These assets are divided into three classes:

- venture capital for innovative companies ;

- listed equity ;

- Fixed income investments.

The investment activity is exclusively conducted for proprietary asset management and on behalf of the companies controlled by VGGF Holdings and following their cash-management policies.

Key drivers of investment strategy:

1. Respect for risk

Our investment ethics focuses on the provision of reasonable and risk-adjusted returns. Regarding venture capital activities, this approach is supported by a long-standing belief that sustainable growth in sales must be accompanied by positive net results, even for recent innovative companies.

Respect for risks does not mean that we shun it - rather, this mindset reflects the importance we attach to a proper understanding, quantification and pricing of risk.

2. Social Responsibility

VGGF Holdings' investment decisions are guided by our environmental, social and governance ("ESG") policies. Such investment policies translate into three concrete objectives:

- Integrate ESG criteria into our investment decisions to create long-term value for VGGF Holdings and its partners;

- Promote ESG approaches within companies in which VGGF Holdings invests and has a significant influence on governance (link to governance);

- Provide growth opportunities in line with reasonable expectations of teams, partners and clients of VGGF Holdings’  subsidiaries.

3. Diversification of assets

Proprietary asset management is based on a balanced allocation of risks between capital and debt securities as well as between listed and unlisted companies (i.e., venture capital). Subsidiaries asset management strategy is assessed in cooperation with said subsidiaries.

VGGF Holdings provides its subsidiaries with legal and business experience in M&A and other funding operations. In that perspective, VGGF Holdings offers following service to its group companies :

- detect acquisition opportunities;

- ensure the development of the company through relevant equity and/or debt operations ;

- fund internationalisation of their offers through international partnerships.

Key drivers of VGGF Holdings M&A strategy

1. Social Responsibility

M&A activities are governed by our environmental, social and governance ("ESG") policies. Financial developments of VGGF Holdings group companies shall be in accordance with reasonable expectations of the teams, partners and clients of these companies.

2. Respect for risk

When acting as venture capitalist, VGGF Holdings ensures the fair remuneration of its risk taking into account the long-term objectives of target companies.

3. Fee transparency

VGGF provides transparent terms and conditions of all fee arrangements with its subsidiary to ensure fair treatment of minority stakeholders. 

VGGF Holdings is actively involved in the operational management and / or corporate governance bodies of its subsidiaries. In particular, startups where VGGF Holdings invested in early stages. In that perspective, VGGF HOLDINGS group:

- share the legal, compliance and financial costs ;

- disseminate best financial and legal practices ;

- provide funding and growth through its complementary merger and acquisition activity

Key drivers of VGGF Holdings corporate governance strategy:

1. Operational involvement

To understand operational constraints, to develop mutual respect between VGGF and operational teams and to assess the relevant calendar for possible operations of M & A, VGGF is involved in daily management of its group companies.

2. Legal and financial structuring

One of the main convictions of VGGF Holdings is that legal and financial strict policies of large companies must be integrated by growth companies as soon as they are created. The mutualisation of related costs being allowed by VGGF Holdings group.

3. Team incentivisation

Allowing fair remuneration to the teams according to clear objectives in terms of income, profitability and any other relevant indicator according to market conditions (e.g., obtaining recruitment, recruitment, recovery deadlines, patent filing) is key to maintain their long-term involvement.