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European Capital Partners (ECP) is a Luxembourg based asset management boutique founded in 2010 by two local entrepreneurs. In 2014, the partnership has been broadened to Léon Kirch who became also Chief Investment Officer to expand ECP’s expertise in investment management and more precisely in the management of “Value” oriented European Equities portfolio.

 

Through its “Entrepreneurial Value Investing” philosophy, ECP provides an innovative approach to the 90-year history of value investing based on a combination of an entrepreneurial thinking with a high conviction, long-term and consistent implementation.

The Investment team has an average experience of 15 years in portfolio management.

Investment philosophy

In Brief

Entrepreneurial

For us, the risk of an investment in a company does not lie in the volatility of its share price but in its fundamentals. Like an entrepreneur who is considering taking over an unlisted company and is carefully scrutinizing its fundamentals, we do not stay glued to our Bloomberg screen but apply a golden rule consisting in understanding the companies’ business and fundamentals prior to any investment.

Value

Growing companies can be attractive investment opportunities, but experience has shown us that it is very difficult to properly value growth which is thus not a relevant investment criteria for us. Therefore, in line with Benjamin Graham’s philosophy, we put a large emphasis on the “earnings power” and “margin of safety” concepts. Through the earnings power, we are focusing on the quantity of cash a company needs to maintain its activity. In the same time, we only invest in companies benefiting from strong earnings power and which share price is trading at a sufficient discount (min. 40%) compared to our target price.

Investing

We are not traders, our investments are founded on convictions and made with a long-term investment horizon. Similarly, in order not to reduce our investment universe, we want to keep a high degree of flexibility in terms of geographical, sectoral and market capitalisation allocation. Our portfolio is concentrated and focuses on our main convictions in which we invest for a period of 4 to 5 years in order to allow the market (Mr. Market as Benjamin Graham called it) to recognise the earnings power of our underlying companies.

 

Our History

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

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.

Conviction

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.

Flexibility

Being a human-sized company allows us to offer a flexibility in our services offering. In addition, when managing portfolios, we adopt a flexible approach that allow us to cover a wide investment universe so as not to miss potential investment opportunities and therefore potential sources of returns.

Flexibility does not mean however lack of rigor: quality and accuracy of the offered services and of our investment decisions remains the central focus of our teams.

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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The investment team

Léon Kirch

Chief Investment Officer
Managing Partner

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Allan Saustrup Jensen

Portfolio Manager

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Gajendra Rai

Senior Analyst

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Mohamed Afifi

Junior Analyst

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