Recently strengthened by the arrival of Béatrice de Mahieu, former CEO of Becode, finance&invest.brussels is renewing its ambitions, explains its CEO Pierre Hermant.
Eight years is both a very long and a very short time when you have lots of projects and ambitions... At the helm since 2018, Pierre Hermant has, since its recapitalization in 2020, turned the former SRIB into a balanced investment tool that is independent of regional public finances. This is the result of a strategy to diversify its sources of funding, but also of a profound transformation. When discussing the progress made, the CEO looks back on his first few weeks spent listening to those involved in the field, his peers at Wallonie Entreprendre and PMV, but also and above all his teams, whose skills he has gradually developed and whose efficiency he praises. We meet a leader who is involved in many ways in the economic future of the capital.
How can we summarize FIB's transformation?
We changed the fundamentals through more than 25 projects involving all teams, within which roles evolved. Our processes were digitized as much as possible to increase the number of cases handled. At the strategic level, we analyzed and identified value-generating themes on which to focus our efforts. This began with a clear redefinition of our mission: to act as a benevolent investor for companies and offer them solutions that facilitate their financing chain. From there, we were able to forge a simplified and effective offering, limited to equity investments, subordinated or convertible loans, and guarantees.
Why was this necessary?
As before, it made no sense to compete with banks—which we see as partners—by offering senior debt. This approach was very well received by all parties, particularly the market. It gave us credibility, which was essential in enabling us to recapitalize in 2020 by convincing private companies. We were then able to raise the boosting debt fund. Managed with great rigor, the corresponding loans granted to Brussels companies to counter the impact of COVID-19 are now enabling investors, including the region, to reap the dividends.
The European Investment Bank has also recently granted you a credit line of €50 million...
It will enable us to support SMEs undergoing transformation through subordinated loans at attractive rates. I encourage them to contact us. We had
Already received, in 2021 and then 2023, guarantees from the European Investment Fund amounting to €132 million to cover the default risks of the companies we support. This will guarantee part of our investors' investments and improve profitability. These projects are prepared over four or five years and require robust compliance policies and in-house expertise. They enable our teams to ramp up their activities, establish our credibility, and increase our resources. Once again, everything is connected.
How does FIB compare to your Walloon and Flemish counterparts?
Ten years ago, Brussels-based scale-ups and start-ups turned to Liège or Charleroi to seek venture capital. Whether justified or not, Brussels had a reputation for only granting loans. This is still clearly reflected in the figures today, but the dynamic has changed. That said, it would be a mistake to try to copy and paste the model. Above all, we must respond to the needs of our market. Brussels has 118,000 companies, only 5,000 of which have more than five full-time equivalents. None of them are seeking investment tickets of €25 million, even though we would be able to raise them. Our average ticket is around €500,000, and our largest investment in recent years was €20 million in Cityforward. This makes perfect sense given the strategic nature of this real estate redevelopment for the region. But I expect other requests for significant investments in the near future, linked to the reindustrialization of the Audi site.
What is your investment philosophy?
We like to support companies that have already successfully deployed and tested their prototypes in real-world environments and achieved their first commercial successes outside their immediate circle and at standard prices. Among our successes are Collibra, Apptweak, Greenomy, Numeca, ProUnity, and EnergyVision. Without an Ethias or FN Herstal in our portfolio, we do not enjoy recurring dividends like others do. We must therefore ensure our profitability through interest on loans and our “exits” over a 5- to 7-year horizon. That said, starting out with limited resources has forced us to be very rigorous, and the team is now very strong. It has not grown in recent years, even though the amounts we manage have increased considerably. Our management fees are optimal.
Is your roadmap guided solely by financial returns?
Our primary role is to analyze and challenge the project leader and to identify, in a supportive manner, the financing method that best suits their needs and repayment capabilities. Sometimes, the bank is sufficient, and we redirect them. We reject applications that have no prospect of profitability. However, in a region with 90,000 unemployed people, we also have to think of ourselves as a fund that
impact, motivated by the idea that entrepreneurship is a vehicle for integration. This dimension of the social and solidarity economy is essential and also motivates our teams. And it has many success stories, such as the Brol Coffee House in Molenbeek, one of the businesses we backed when the banks turned it down and which now employs 16 people. Ultimately, a portfolio of companies with no losses would mean that we are not fulfilling our role as risk-takers or pioneers in emerging areas. But conversely, I never want us to be able to say, after a bankruptcy filing, “we saw it coming.”
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