1. 4 | June 2016 | Springfield Business Journal
From the venerable Investopedia.com:
“Private equity is a source of investment
capital from high net worth individuals and
institutions for the purpose of investing and
acquiring equity ownership in companies.
Partners at private-equity firms raise funds
and manage these monies to yield favorable
returns for their shareholder clients.”
In the last year, Springfield has become
home (or at least “co-home” with Houston,
Texas) to a private equity investment firm
that brings a new corporate philosophy to
its international investment strategy. Henrik
Rasmussen, one of two managing directors
for the new firm, hails from Denmark but
purposefully calls Springfield home. The
new firm, Cimbria Capital, draws on the
strengths of its founders but also finds
direction from the fields of the Midwest to
the steppes of northern Europe.
Rasmussen’s career began in
Washington, D.C., consulting with sizable
international corporations. “I largely
worked in business development,
regulation and branding,” Rasmussen
explained. In his consulting capacity,
Rasmussen assisted companies in building
solid cross-Atlantic relationships between
the United States and the European Union.
As often happens, Rasmussen’s family
expanded and he and his wife, Kristina,
decided to seek out a better location
to raise their children. An opportunity
opened for Kristina in Springfield (she is
now executive vice president of the Illinois
Policy Institute) and the Rasmussen family
set down roots.
Rasmussen continued to advise clients
on international matters and found that
Springfield provided a great location to
continue building his public relations
business. “Springfield has a lot going for
it because of its location between Chicago
and St. Louis,” Rasmussen said. “The
airport is very convenient – it is easy to
get to the east coast and Europe without
much difficulty.” Additionally, Springfield
provided Rasmussen with a lifestyle that
supports family and business success. The
Midwest also played a major part in the
development and focus of Cimbria Capital.
The company is
the brainchild of
Rasmussen and Brian
Iversen, managing
director at Cimbria’s
Houston office. “The
odd thing is that Brian
is also Danish, was an
officer in the Danish
military like me and
married an American
woman,” Rasmussen
noted. “But we didn’t
meet or work together
until we were both
in the United States.”
Iversen – who has
worked in private
equity focused on the
energy sector – and Rasmussen decided to
stretch their entrepreneurial wings with the
formation of a new type of investment firm.
Rasmussen and Iversen built the
foundation of Cimbria Capital upon four
pillars: value-added private equity, limited
focus on specific sectors, an international
scope and commitment to
corporate statesmanship.
“Cimbria is not just about
plunking down capital and
walking away,” Rasmussen
noted. “We believe we
bring a talented group of
professionals who work
directly with our companies
to support their efforts
to scale.” Cimbria is an
active investor that takes
on substantive functions
within a company such as
branding, logistics, market
development or public
relations. “We look to invest
in companies that already have a product
and sales but with our assistance can move
to the next level,” said Rasmussen.
The firm’s focus is limited to two sectors,
agriculture and water. This narrow scope
allows the company to become expert
in the area and build deeper, beneficial
relationships with the players in the U.S.
and the E.U. Cimbria
invests in companies
merging technology
with agricultural
processes and water
resources. “These
are two of the oldest
necessities – food
and water,” explained
Rasmussen. “The
world is running out
of water and farming
must adapt to produce
more efficiently.”
Agriculture and water
investing also tend
to be overlooked by
private equity firms,
thereby giving Cimbria
limited competition.
Cimbria provides its investors with
opportunities in products and innovative
technology that may save water, energy or
both. The firm’s investment focus includes
companies that improve water quality
with smart technology that drives value
and returns for clients.
The firm also seeks out
agricultural concerns
that are supporting
crop and livestock with
new biotechnology
advancements. “We are
not looking at companies
that grow soybeans or
raise cattle, but we are
interested in companies
developing advanced feed
and fertilizer that positively
impacts agriculture,” said
Rasmussen.
Cimbria’s Springfield
offices provide the firm
with a base of operations in the midst of
agricultural innovation. Aside from the acres
of corn and the barns of hogs, Illinois is home
to some of the largest agriculture players
like ADM, Staley, Caterpillar and John Deere
as well as academic research institutions
such as the University of Illinois. “One of our
four pillars is to provide a true international
investment opportunity for our clients,”
Rasmussen continued. “The Midwest and
northern Europe are well suited for growth
and diversity in our core areas.”
Providing clients with an international
scope is typically the purview of large, global
banks and firms that do not focus on smaller
investment deals. Similarly, smaller private
equity firms tend to provide investors with a
parochial strategy that identifies only local
and regional prospects. Cimbria was started
to provide the nimbleness of a small firm
with relationships across the E.U. and the
U.S. that results in investments with greater
impact for clients and companies.
Finally, Rasmussen and Iversen strongly
believe that corporate statesmanship can
bring about industry change and change
for society. “Cimbria is an evangelist for
how we do business predicated on the
other three pillars,” Rasmussen said. “We
are active in speaking out on issues such
as working internationally, that technology
can drive results in agriculture and water
quality, and investors can play an active
role in bettering companies.” By leading
the charge to transform how private equity
can drive change, Cimbria contends that
society will benefit and investors will see
profitable rewards.
An international private equity firm
operating in Europe and across the U.S.
would lead some to believe that New
York or D.C. would be a better location for
Cimbria. Rasmussen, however, argues that
technology allows him and his colleagues
(like Springfield native Noah Sabich) to work
where they want to live, be that Springfield
or Houston or wherever. Rasmussen also
sees hope for Springfield’s business climate.
With the Sangamon CEO program and the
Innovate Springfield incubator, Rasmussen
sees positive developments for Springfield.
“People with talent move where other
people with talent are,” Rasmussen said.
Cimbria is poised to play just such a role in
attracting talented people to Springfield.
David A. Kelm is a Springfield-area
attorney. He can be reached
at DavidAKelm@gmail.com.
INTERNATIONAL INVESTMENT
Henrik Rasmussen
“We look to invest
in companies that
already have a
product and sales
but with our
assistance can move
to the next level.”
– Rasmussen
Private equity in the capital city
By David A. Kelm