Del Huse is a Managing Director at Oakley Capital Private Equity, a mid market private equity fund operating in the UK and Europe.

• More high value deals, like Kiddicare and Wiggle, to come in 2012
• Oakley keen to acquire or invest in £10m+ businesses
• How high valuations/offers can lead to conflicts
• Plan to grow and improve Intergenia following €40m deal

What will 2012 look like for private equity deals in online, retail and digital media?
Expect to see continued strong interest from private equity in the space. Proven “game changing” online and digital models will continue to see deals done at high valuations (like Wiggle and Kiddicare) as private equity investors look to support the next big thing.

We are currently looking at several live online transactions including internet food retailing in the UK, online consumer services in Germany, digital media services in the UK and online clothing in Germany.

What should owners/founders look for in a private equity partner?
More than just a cheque! There are plenty of funds with money, but a lot less with the entrepreneurial, strategic and operational experience to really add something to the business.

Owners/founders should take the opportunity to add to the skillsets on their Board. They should avoid working with partners who offer them the highest valuation but are new to the sector – these partners are overpaying because they don’t understand your business and this usually leads to conflict down the line.

Tell us about Intergenia your most recent investment. How will the business change now you have taken a majority stake?
Intergenia is a German web-hosting business for medium sized businesses and is riding the wave of growth in companies increased use of the web.

We bought 51% from the founding entrepreneurs and will work with them to combine the best of our skills to accelerate growth and improve the business. As with other entrepreneurial businesses we have invested in, we will help to develop strong financial discipline and reporting there, as well as using our own experience, and that of our network of senior industry contacts, to provide strategic advice around a planned new product development and launch.

Apart from the funding aspects, what strengths does Oakley Capital Private Equity have in technology/e-commerce/digital?
Oakley’s senior team has a well-established track record in buying and investing into, operating, growing and selling businesses in these niches – our track record includes Pipex, 365 Media, Daisy Group, Verivox, Host Europe and Emesa.

We combine capital with proven entrepreneurial flair, and operational discipline. Unusually for a private equity firm we are run by an entrepreneur, Peter Dubens, who has founded, built, grown and sold a whole variety of business.

Most of these deals have been in technology/e-commerce/digital, and therefore the network of contacts we have in the sector is a real differentiator for us.

Also, we are able to provide all elements of the capital structure in our deals, including debt and mezzanine debt if it’s relevant.

What criteria does an online retail business need to have to meet your investment strategy?
In short, something which gives a business a compelling and defensible growth proposition – be that in terms of its product, its market niche, its route to market, etc.

Right now I would be keen to acquire, and/or invest into, a business which gives Oakley the opportunity to put in excess of £15million of capital to work. For newer businesses it’s unlikely that we will invest in businesses with turnover of much less than £10m and it would probably need to be turning a profit – we are looking for businesses which are proven and showing growth.

Alternatively we will look at larger, long established brands which have “lost their way” but have the potential to be reinvigorated. These are likely to be say £40m plus of turnover and may be loss making, but capable of a turnaround and a return to profitability.