Centripetal

Centripetal is a Stockholm-based investment firm that distinguishes itself from traditional venture capital by focusing on acquiring majority or significant minority stakes in established European companies. Their core strategy revolves around building company groups through active ownership, providing not only capital but also strategic guidance and operational expertise to their portfolio companies. This approach targets businesses with proven business models, robust management teams, and substantial growth potential.

Unlike typical VC firms that invest in early-stage startups, Centripetal primarily targets mature companies. A key indicator of their focus is their stated preference for companies with an annual EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) ranging from SEK 10 million to SEK 50 million. This financial criterion translates to approximately USD 950,000 to USD 4.76 million in annual EBITDA, signifying their interest in profitable, mid-sized enterprises rather than nascent ventures.

Given their acquisition-focused model, Centripetal's "check sizes" represent the equity investment component of an acquisition price rather than a typical venture capital funding round. Based on their target company EBITDA range and common valuation multiples for such businesses (e.g., 5x to 10x EBITDA), their investments for acquiring majority stakes can vary significantly. For instance, an investment in a company at the lower end of their EBITDA target, assuming a conservative valuation multiple, could involve an equity check of approximately USD 2.4 million. Conversely, acquiring a larger, more established company at the higher end of their EBITDA range, with a higher multiple, could see their investment reach up to USD 47.6 million. This broad range underscores their flexible approach to building their portfolio through strategic acquisitions across Europe.