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European Capital Partners (Luxembourg) S.A. has originally been founded in 2010 by Luxembourgish entrepreneurs. With the arrival of Léon Kirch as Partner and Chief Investment Officer in 2014, the company has taken a new dynamic in investment management and more precisely in the management of “Value” oriented European Equities portfolio.
 
In 2020, in partnerships with Colombo Wealth SA, a swiss family office founded by Dario Colombo, and Whitestone Partners, an investment firm founded by Frédéric Pouchain and Sandro Ardizzone, European Capital Partners expanded their activities with asset servicing and wealth management.

Investment philosophy

In Brief

ECP is based on the original approach of Entrepreneurial Value Investing which consists of investing in marketable securities with a private equity mindset.

Entrepreneurial

Think and act as an entrepreneur. Companies must be analysed from the perspective of an entrepreneur who intends to purchase the whole company. As a result, the risk of a company does not lie in its stock price but in its fundamentals. The team applies a key golden rule in order to understand the companies’ business. Their fundamentals will then translate into the firms’ intrinsic value.

Value

Margin of safety concept. The team’s assessment of “Value” is based on the Earnings Power of the business and its capacity to generate free cash flow over an entire business cycle. Earnings Power is the cash that could be extracted from a business in a normal year while reinvesting enough in the business to maintain its current production capacities. Before buying any stock, the team defines its intrinsic value and focuses on companies that are trading at a min. 40% discount to this estimated intrinsic value.

Investing

Patience will be rewarded. It takes time for financial markets to recognise the Earnings Power Value of a company and thus for the underly-ing margin of safety to close. The investment team adopts a long-term in-vestment horizon of 4 to 5 years resulting in a low portfolio turnover. The final portfolio is concentrated and built around the key convictions of the Investment team (typically 30 to 40 individual names).

 

Our History

ECP’s history is inextricably linked to the entrepreneurial values of our shareholders.

March: Shareholder structure enlarged to Whitestone Partners and Colombo Wealth SA

2020
Obtention of UCITS licence
2018
Obtention of AIFM licence

August: Transformation of ECP European equities strategies into UCITS format
2015
August: shareholder structure enlarged to Léon Kirch

End Dec.: Launch of ECP European equities strategies (SIF format)
2014
Creation of European Capital Partners

Start as a Regulated entity for Private Equity & Real Estate activities of Edison Group
2010

Our Values

As Luxembourg-based company with European ambitions, the following values are at the core of our corporate culture.

Entrepreneurial Spirit

Entrepreneurship is an integral part of ECP’s DNA, not only because of our shareholder structure and history but also in our investment approach. Our aim is to place this dynamism and entrepreneurial capacity in the service of our clients and investors.

Independence

Our desire for independence is reflected at two main levels

  • Independence of our shareholders towards major financial groups
  • Independence of thought and action in our investment approach

Integrity & Transparency

As investors, you give us a mandate to manage your money or that of your clients. We must properly value this strong mark of trust by guaranteeing you in return our clear commitment to build with you and your clients a long-term fruitful partnership.

Your success is our success!“: Our investment managers have invested a large part of their own money in our investment strategies, sharing with our investors the potential benefits but also the possible failures of our investment decisions.

Likewise, as a partner and member of the Board of Directors of European Capital Partners, Léon Kirch is involved in the definition of the development strategy for the company and the portfolios we are managing, making sure that the interests of our investors are at all times taken into account.

We say what we do and do what we say” is one of our founding principles by which we are committed to provide you, at all times, with a high level of transparency on our activities and investment decisions as well as a high availability to address your needs and answer all your questions.

Professionalism

Any entrepreneurial project requires conviction. Conviction in the sustainability of the project, conviction in the professionalism and expertise of the teams involved… This power of conviction acts as a powerful engine for the development of the company.

Moreover, investing in financial markets also entails a strong conviction power. Our aim is not to propose standardized investment solutions modeled on any market index, but rather to offer an active investment strategy while not being afraid to think outside the box in order to generate alpha for our investors.

This kind of approach requires a strong conviction in the validity of the applied investment philosophy and in the investment decisions we take but it also requires some courage…courage to, sometimes, be contrarian and go against the crowd, to measure the risks linked to our investment decisions but also and above all the courage to remain humble, to take nothing for granted and to admit our own mistake in order to learn from them.

Our Shareholders

Founded in 2010 by two Luxembourgish entrepreneurs, ECP initially acted as the regulated entity for the Private Equity and Real Estate activities of the Edison Group. During the summer 2014, the founders opened their strategic partnership to Léon Kirch, specialist in European equities.

EDISON GROUP
50%
LÉON KIRCH
50%

Our Corporate Governance

ECP's governance is articulated around the Board of Directors composed of the main shareholders and one independent director.

Léon Kirch

Chief Investment Officer
Managing Partner

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Jan Stig Rasmussen

Member of the Board of Directors

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Knut Reinertz

Member of the Board of Directors

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Patrick Hansen

Chairman of the Board of Directors

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Joachim Kuske

Member of the Board of Directors

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Sandro Ardizzone

co-Chief Executive Officer

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