Investment42

Investment42 targets founder-led or family-owned Mittelstand companies in Germany, Austria, and Switzerland with EUR 10 million to EUR 100 million in revenue. The firm focuses on businesses facing succession challenges, underperformance relative to their sector, or neglect inside a larger corporate parent. Operational complexity is the common thread — Investment42 seeks situations where hands-on intervention can unlock value.

The firm deploys its own partners as full-time interim executives inside portfolio companies, occupying CEO or COO seats rather than relying on external advisors. This operator-resident model means Investment42 partners work directly inside the business for the entire hold period, typically four to seven years. The firm does not use a passive board-observer approach common among DACH-region small-cap funds.

The firm concentrates its activity on Germany, Austria, and Switzerland, with additional coverage extending into Benelux. The investment team's network and operational model are built around the legal, cultural, and business practices specific to the Mittelstand ecosystem. Cross-border acquisitions outside this corridor are rare and would require a resident operational partner fluent in the target market.

Founding Managing Partner Michael Hilka and Managing Partner Ralf Schneider jointly lead investment decisions, supported by a partnership team with operational rather than purely financial backgrounds. The firm's investment committee structure is concentrated, reflecting the partnership's view that turnaround judgment cannot be delegated to a large committee removed from the target company's day-to-day realities.

Investment42 mandates that its partners serve as line managers inside portfolio companies rather than as board-level monitors. This creates a genuine operational distinction: the firm does not retain portfolio company management teams as-is in turnaround situations. Most comparable DACH small-cap funds rely on advisory boards and external consultants, preserving existing management structures that Investment42 typically replaces as part of its buy-in thesis.