Fernweh is a new type of partner-to-management founded on the belief that by integrating world-class management know how (“IP”), technology, digital best practices, and flexible capital, we can help industrial technology companies in North America and Europe create “alpha” and drive accelerated, sustainable, and profitable growth.

Fernweh Founding

Fernweh is being launched by leaders from several leading institutions including McKinsey. Some have worked together for 10+ years advising companies in the industrial and technology sectors on strategy, M&A, and operational transformation. Over the past decade, we have driven over a dozen industrial and technology transformations.

One of the reasons we founded Fernweh is our desire to extend this capability to the mid-and micro-cap industrial technology sectors. Companies in this sector are the engine of the economy, but often it is infeasible for them to access cutting edge management and strategy support that will
create additional economic value. Each of these companies has a unique context and history, and bespoke needs. We built Fernweh to help address these needs.

DIFFERENTIATORS

Our offering is comprehensive: We combine capital with IP, capabilities and domain expertise (industry & functional) to create alpha.

Key elements of our comprehensive offering include:

  • $1B+ capital to support investments in growth and/or increased resiliency.
  • World-class advisory support to help leadership teams drive transformative change.
  • A bench of seasoned executives who can step into operational roles as and when needed.
  • An ecosystem of technology partners with whom we can work to digitally enable your operations and make improvements sustainable for the long term.

Our approach is flexible: We deploy IP and capital as per the specific needs of each portfolio company and the path they choose to go down with us.
The options under our flexible approach include:

  • Initially limiting our investment to being an engaged partner for fees, warrants and equity.
  • Making substantial capital commitments and to contributing-management.
  • Executing buyouts, partial investments, or “build-operate-transfer”; arrangements for portions of businesses that have ceased to be strategic or require capabilities that management teams don’t possess.
  • Helping companies find the right capital or advisory partner for their needs.

In all cases, our commitment to the success of our portfolio companies is absolute and we align our interests  with theirs. We only succeed as they do.

BELIEFS, COMMITMENTS, AND EXPECTATIONS AT FERNWEH GROUP

7 Beliefs

  1. There is need for a new type of company in industrial tech – engaged operators & investors who are neither “just” advisors nor “just” capital allocators.
  2. Win-win partnerships always outperform zero-sum transactions over time.
  3. Do good things and good things happen.
  4. Collaboration & individualism are not mutually exclusive.
  5. Only outcomes matter.
  6. Failure is the best teacher.
  7. Time is our most precious commodity.

9 Commitments

  1. A true meritocracy – clear expectations and no moving of goalposts.
  2. Transparency at all times – no last-minute surprises about where things stand.
  3. Seat at the table for all – everyone will have an opportunity to safely provide input.
  4. License to innovate and take appropriately syndicated risks…
  5. …and honest acknowledgement of risks or actions that don’t succeed.
  6. Personal investment from the founders in each colleague’s growth & success.
  7. Access to world-class resources and support to help you succeed.
  8. Comp model to encourage collaboration (and never pit people against each other)…
  9. …recognition/rewards for Putting the team ahead of self.

11 expectations From colleagues

  1. COCA and PQA (ask us!).
  2. The gold standard in everything you do – keep upgrading what good looks like.
  3. Never take no for an answer – finding the solution to any problem together with the team.
  4. Put the interests of shareholders. companies. and colleagues before your own.
  5. No fear of “stupid” questions that get to “smart” answers.
  6. Responsibility for your actions: no playing “PR game”.
  7. Resist pride of authorship; leverage expertise & “ride the shoulders of giants”.
  8. Relentless intellectual curiosity – focus on understanding & applying first principles.
  9. Clear real-time communication – good news or bad.
  10. Clock speed – quick responsiveness: decisive actions.
  11. Active listening: less talk. more walk.