Brederode is an international investment company whose shares are listed on the Brussels Euronext and Luxembourg Stock Exchanges.
After a long history stretching back to the year 1804, the company underwent a fundamental change in strategy in 1977 at the instigation of the new reference shareholders. The new approach involved the gradual withdrawal from direct industrial and commercial activities in favour of acquiring, for its own account, positions, generally of a minority nature, in companies with no involvement in their management. Since then, Brederode’s aim has been to regularly increase its shareholders’ net worth by recurrently generating not only dividends but also (and above all) capital gains. Its portfolio is henceforth made up of two different and complementary sectors; that of investments in unlisted companies (“Private Equity”) and that of investments in listed securities.
For more than 20 years Brederode has progressively focused on the management of its Private Equity portfolio, which has become its main centre of activity. The appeal of Private Equity is linked to the opportunity it offers of securing higher returns than those expected from the stock market. The investment style chosen is primarily that of buyout i.e. the purchase of private companies, organised by the best managers, bringing together primarily institutional investors, such as Brederode, within dedicated funds. Success here involves the rigorous selection of an international network of top-level managers, coupled with ongoing monitoring.
The long experience that Brederode has accumulated in this domain has been one of the main contributing factors to the company’s overall performance for many years.
Beyond its own return objectives, the listed securities portfolio is increasingly regarded as an ultimate financing reserve in support of Private Equity. It continues to be subject to rigorous management, with the aim of achieving a balance between its defensive character and the objectives of profitability, liquidity and growth.
Brederode is today one of the few companies specialised in Private Equity, publicly traded and self-managed to the exclusive interest of its shareholders.
Brederode also benefits from the stability of its controlling shareholder from which the executive management emanates. This means the latter can take a long term view, less subject to the influence of disruptive external factors affected by short-term considerations.
Finally, Brederode benefits from an overall level of management costs lower than that of the market and an uncompromising governance structure.