In partnership with another private equity company and with the involvement of management, in 2008 capiton acquired a majority interest in what was then the second-largest German provider of services to the sales and marketing, customer service and order processing industries. In a rapidly growing market for outsourcing of customer-focused business processes, walter services had positioned itself as a leading provider. A combination of detrimental regulatory changes, problems with the company’s largest client, and a market development which was much worse than forecast, led to a sharp fall in profitability. In 2011, capiton decided against providing new capital in the course of the financial restructuring which had become necessary; capiton therefore resigned from the Board and had to write off the investment. The company filed for bankruptcy in 2013.
Industry: Service / Trade / Logistics
Financing Events: Management-Buy-Out