Bracknor IG: Providing Proactive Financing for Small and Mid-Cap Companies
By Pablo Erbar
The fourth edition of the Monaco Growth Forums, which was held at the end of 2016, counted with the presence of Bracknor IG, a Dubai-based single-family office with $100 million under management. The global alternative investment firm specializes in financing small and mid-cap enterprises, delivering risk-adjusted cash flows to undervalued companies.
Despite focusing on high-growth sectors such as medtech, cleantech, and biotech, CEO Pierre Vannineuse believes the investment group’s asset allocation strategy is “sector agnostic”. In a recent interview, Vannineuse indicated that Bracknor remains open to any new ideas that come its way, although it favors the aforementioned sectors due to their growth potential.
Bracknor has a unique asset allocation strategy, which seeks to create a true partnership with the firms it invests in, as well as their management teams. By bringing proactive financing to the entities in its portfolio, the firm delegates control over funding to the companies themselves. As explained by Vannineuse, “we give them a firm commitment, but they [the companies] have the option to draw capital whenever they want.”
In the medtech sector for example, Bracknor typically invests in companies that are in Phase 2 or 3 of product development, and are looking for an investor to increase value before striking a multi-million dollar deal. Since the investment group provides firms with large sums of capital regardless of market conditions, Bracknor prefers to work with listed companies. According to Vannineuse, full disclosure is fundamental to the fund’s long-term investment plans, which usually consists of entering 3-year contracts with the company it finances.
Disclosures: The author, Pablo Erbar, holds no interest in any of the securities or entities mentioned above. He has not received compensation for this article, other than from Small Cap Nation. The statements above do not constitute recommendations. The article has been based on publicly available information, and seeks to be unbiased and non-promotional.