Danica Capital is a Private Equity investment firm that helps SMEs in Brazil realize their growth potential
We acquire and scale-up small and medium enterprises (SMEs) in Brazil with EBITDA > 20%, CAGR > 10%, revenue between BRL 50-200 million, a competitive advantage in their field, and a track-record of resilience during recessions.
We offer entrepreneurs a liquidity event and a responsible succession plan.
We offer investors ready-to-sign buyout investment opportunities structured with an attractive risk-return profile.
Investor Profile | 75% Institutional, 25% Family Offices
~40% from ESG Funds, Danish Sustainable Development Goals Fund co-invested with 7 Danish Pension Funds;
~35% from the largest Fund of Funds in Brazil, co-invested by global wealth management firm in Brazil;
~13% Family Offices in Brazil;
~12% Family Office Holdings in Denmark.
Reported Returns (FIP Structure)
Danica FIP is regulated by the Securities and Exchange Commission in Brazil (CVM) and reported:
+31% in Gross IRR for the Period 2020 - 2023, 4 years (in BRL).
Target firms audited by Deloitte, FIP audited by Crowe.
The values of Danica Capital
Our values center around intellectual humility, idea meritocracy, and close teamwork with management, experts and hands-on Board members, with a shared culture and vision.
We do not believe in "external A-team with all the answers" and focus on building on the strengths of the existent core team.
Danica Capital searches for well-managed family-businesses and offers entrepreneurs the possibility for a liquidity event in exchange for us being their successor of choice.
At Danica Capital, we strongly believe in culture, values, and having a clear strategic thesis. So much that we write them on our walls. Research corroborates the financial importance of a strategically aligned and innovative-based culture. According to HBS, companies with strong cultures outperform those with weaker cultures with 4.1x higher revenue growth, 12.2x higher stock price growth, and significantly higher net income.
The meaning of the word 'Danica'
‘Danica’ stems from etymology and historical origin, where the simple Latin pronunciation "DAN-ǝ-ka" means "Danish", relating to Denmark and its people. The founders of Danica Capital are Danish, and are proud of the country's culture, especially in relation to Danica Capital´s core value "explicit ethics". According to 'Transparency International' (www.transparency.org/cpi), Denmark ranked #1 (our of 176 countries) most ethical country in 2012, 2013, 2014, 2015, and 2016.
Brazil’s wide productivity gap is a huge opportunity for Private Equity (particularly in SMEs)
Brazil is the 9th largest global economy, but ranks 57th in productivity (World Bank statistics). This productivity gap will persist and likely widen due to developments of automation globally. Labor costs in Brazil have also risen sharply during the last 15 years (Brazilian Central Bank), intensifying the gap’s significance and the importance to address it. This represents a huge opportunity for Private Equity.