Internet has changed the way customers and producers get in touch leading to a disintermediation of the value chain. Currently, customers have a great deal of information in the Internet in order to make a purchasing decision. The client already knows what he / she wants independently of the channel that can be employed (online vs offline). In this context, only the premium brands supported by the premium products are the winning horses in this race. This trend is currently taking place at a global level with traditional marketplaces such as Amazon or Zalando developing their own brands in order to capture demands as they understand that the value is in the product whilst the distribution channel turns into a commodity.
Spain is a country with a long-standing track record of quality raw materials, specialized manufacturing processes and artisan practices where there has been a great success of companies at an international level. However, despite these highly appealing attributes, the investor attention to this particular segment has been very limited: on the one hand, financial entities have been lending resources for the financing of working capital and on the other, traditional private equity firms, have focused on larger size companies or in small companies focused on the technological sector.
Axon Partners Group is looking to support these companies with a new fund called Premium Brands that will be focused on investing in premium brands and products in order to internationalize and develop adequate omnichannel strategies. Premium Brands Fund is a growth fund focused on investing in companies with track record business models, with EBITDAs up to €5m and already generating positive cash flow. The fund has a target size of €50m - €100m and as of today there are more than €10m funds committed from highly reputed FO and Institutional Investors. The fund is expected to register its first closing by 1H 2017 and will be able to commence with its operations with the funds that have been committed to date.