Belgium’s WAD Capital secures €67.5M first close for debut fund with €25M EIF backing

Belgian investment firm WAD Capital has raised €67.5 million in the first closing of its new fund. The European Investment Fund (EIF) contributed €25 million, making it the largest investor in the fund.

Based in Ghent, WAD Capital invests in small and mid-sized European companies that are facing succession challenges. The firm then places experienced and vetted operators to run these businesses. The new funding will help WAD Capital grow its debut fund from €67.5 million toward its target of €130 million.

Robert de Groot, Vice President of the EIB Group, said, “Europe is home to many successful SMEs with strong growth potential, which need both capital and entrepreneurial talent to pursue their growth path and reach the next stage. WAD Capital’s innovative approach helps a new generation of entrepreneurs take over established businesses and grow them further.

“This way, WAD Capital helps tackle succession issues, whilst supporting business continuity, job creation, long-term competitiveness and adapting their strategies to current market needs.”

Founded in 2023 by Christopher Tournis Gamble, Steven Coppens and Alain Brossé, WAD Capital is building a major European investment platform focused on “Entrepreneurship Through Acquisition.” The firm invests in profitable small and mid-sized companies with annual EBITDA of €1 million to €5 million across the Benelux, northern France and western Germany. Its main areas of focus include healthcare, energy and climate transition, and business services.

For each investment, WAD Capital works with a “CEO in Residence” — an experienced manager who is selected and supported throughout the process, from finding potential companies to leading the acquired business. The firm uses data and AI-powered tools to identify thousands of potential companies and speed up legal due diligence, helping it complete deals that may be too small for traditional advisory firms.

Eight of the 13 CEOs in Residence from WAD Capital’s first group have already completed acquisitions. These include HVAC company Groupe Jordan, construction firm Mignone, security company Alsec, tyre distributor HBI Tyres & Wheels, packaging companies Ausloos and Euro-M, insurance broker Kantoor Lardenoit and events business E-Demonstrations. Another five CEOs are currently in the final stages of completing their acquisitions.

“Eight acquisitions in less than a year and a substantial investment from the European Investment Fund. This shows our model is scalable, and that Europe also recognises the importance of what we do,” said Steven Coppens, Managing Partner at WAD Capital.

With €25 million from the EIF, supported by the European Commission’s InvestEU programme, WAD Capital is working to grow its fund toward a €130 million target, with a maximum cap of €132.5 million. The firm’s managing partners are also investing 2% of the fund’s total capital, alongside a group of family investors.

“Hundreds of thousands of European SMEs are looking for a successor but cannot find one. With this capital, we can match CEOs with those companies more quickly, and keep more jobs and businesses in European hands,” added Coppens.

The new funding will support a second group of 12 CEOs in Residence, with 10 already confirmed. WAD Capital aims to double the size of its cohort and grow its portfolio to 25 companies by the end of 2027.

Alain Brossé, Managing Partner at WAD Capital, said, “By increasing the number of ‘CEOs in Residence’ from thirteen to twenty-five, we can acquire twenty-five healthy SMEs with a succession challenge and keep them in European hands. This is a way to protect jobs and give strong managers the opportunity to become owners.”

“We are not setting up yet another private equity fund for SMEs, we are scaling up the search-fund model – a model that has delivered an average IRR of 35 per cent over the past thirty years – to create one of Europe’s largest institutional platforms for Entrepreneurship Through Acquisition. The EIF’s investment confirms both aspects: the return and the impact.”