September by D’Ornano + Co.: linking DE&I to financial performance, introducing Hybrid Growth Diligence (3.0 due diligence for assessing disruption) and why tech companies should look beyond scale.
This is our monthly newsletter dedicated to Tech x Investments.
Dear all,
Asset Management firms across the Private Markets striving to reach DE&I targets at portfolio level may be missing the goal by putting emphasis on the DE&I targets themselves, rather than on measuring how DE&I actually leads to better performance of the firms that proactively take action on this. I was honored to talk about the subject during an Equality Lounge session held at SALT NY last month, and it appeared as a no brainer: it is time to set the right KPIs to actually see how promoting diversity, equity and inclusion at the workplace leads to a higher EBITDA (both on the short and on the long terms!). Yes, in a time where the economy is strongly impacted by adverse macro-economic and geopolitical factors, understanding how ESG – and maybe more strongly Climate and DE&I considerations - can lead to value creation is a key differentiator for actors of the Private Markets.
More generally, It is time to innovate and to set and embrace the right frameworks for understanding an asset’s resilience, in a context of long-term structural business model changes (under the effect of megatrends such as Digitization, Decarbonization and Sustainability) and increased uncertainty. We explain in this edition how a new form of 3.0 due diligence can help.
Gender Diversity: time to have the right financial KPIs
It is now widely accepted that not only female employees, but the entire company can thrive by implementing policies such as zero tolerance for bias, enhanced parental leave, and childcare support. However there is still a clear lack of clear metrics to measure the financial implications of succeeding in the DE&I journey on promoting women at the workplace, but on so many more issues also. Following the SALT NY 2022 conference, we dive into how to approach the problem by looking at key P&L impacts of gender diversity.
Introducing Hybrid Growth Diligence, a 3.0 approach for assessing disruption
Amid rapidly evolving economic conditions, a new form of due diligence is needed to help investors identify growth-oriented assets (i.e. “Growth Assets”) and fully understand their risks and opportunities. Leveraging the lessons learned from years of advising some of the world’s most influential investors, D’Ornano + Co. is announcing today a new service: Hybrid Growth Diligence.
HGD is our most sophisticated due diligence yet. It is designed specifically to measure the potential of a company to disrupt a sector and create a durable, resilient business. These are the types of businesses that will thrive and dominate over the long run.
We explore the concept and its application on the DNVB brand Sézane here.
Technology start-ups must look beyond scale | Financial Times
This article explores how the era of growth at all costs is over, with the need for profitability (yes) but even more for innovation. The winning assets of tomorrow are those able to create a long-standing difference, both by delivering products that matter and by promoting a modern and empathetic company culture.
Does PE still have a taste for European fashion? | Pitchbook
There have been only a handful of deals since the start of 2022 in European fashion, an industry that has grappled with economic uncertainty and profound customer changes. Still, as explored in the article, there are some opportunities for dealmaking for those companies that are able to develop and improve appropriate distribution channels as online shopping is here to stay.
Based on data from CB Insights, this article explores what is driving the downward trend in unicorn “minting” since the start of the year, after a record 2021! Among the key takeaways are the fact that Europe has seen its number of unicorns actually increase over 2022, reflecting the strength and leeway of its Tech ecosystem, and that if valuations have only fallen moderately across investment stages at this point, the trend could accelerate.
Zenchef
D’Ornano + Co. has advised PSG, the European arm of Providence Equity Partners, in their €50m funding of Zenchef, a digitalization solution for the restaurant industry. The investment will support the company's consolidation strategy in Europe ahead of its US expansion.
Gourmey
D’Ornano + Co. has supported Earlybird Venture Capital in their €48 million funding of Gourmey, an innovative company in the FoodTech vertical producing sustainable meat that is respectful of health, environment and animals. This is the largest Series A ever made in this vertical.
Xempus
D'Ornano + Co. has assisted Infravia on their investment in Munich-based Xempus, a leading European SaaS innovator offering a seamless and simplified insurance distribution platform. This advancement follows the $70m Series D led by Goldman Sachs Asset Management in April.
PayXpert
D’Ornano + Co. has advised PayXpert, a London-based FinTech offering secure payment solutions to merchants, in its sale to the Société Générale Group.
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