Palero Capital

Managing partners Florian Schick and Felix Schick hold investment authority. The firm does not have an external investment committee. Both partners are directly involved in sourcing, diligence, and post-acquisition operational oversight.

Palero sources deals through direct relationships with German Mittelstand owners, corporate development teams at DAX and MDAX companies, and insolvency administrators. The firm's permanent-capital structure allows it to pursue carve-outs that require immediate operational buildout, a complexity that deters many conventional buyers.

No. Palero invests from a permanent-capital base rather than raising successive blind-pool funds. This means assets are not subject to a fixed hold period or forced exit timeline, which the firm argues is essential for operational turnarounds that can take five to ten years.

Palero targets established but underperforming businesses with €10–50 million in revenue. These are not early-stage ventures — the firm looks for companies with a proven product or market position that require operational restructuring, management changes, or carve-out from a corporate parent.

The firm concentrates on Germany, Austria, and Switzerland — the DACH region. While it may evaluate situations in neighboring European markets, its in-house operations team and network of interim executives are built around the DACH Mittelstand ecosystem.

Palero has not publicly disclosed exclusion lists, but its deal history and operations expertise point toward enterprise software, industrial technology, and media. The firm avoids sectors where its operational playbook does not apply — namely biotech, financial services, and heavy infrastructure that requires capex-intensive turnarounds.

The structural differentiator is permanent capital. Most German small-cap buyout firms operate 10-year closed-end funds; Palero's single balance sheet gives it indefinite hold periods. This lets the firm install management, rebuild systems, and exit only when the turnaround is complete, rather than when a fund's term expires.