ICAREX EVS

Pioneering the Equity Venture Studio Model

Imagine if Private Equity and Venture Studios had a baby.

Equity Venture Studio (EVS) is a Brand New Asset Class that is reshaping the Investment Landscape.

At ICAREX Equity Venture Studio, we go beyond the traditional models of Private Equity and Venture Studios.

We acquire established companies with strong potential and transform them into market leaders by innovating, expanding, and creating new growth opportunities.

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Unveiling Our Formula for Consistent Success

ICAREX’s Equity Venture Studio model has delivered exceptional returns by unlocking hidden value in mature industries.

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Engineering and Innovation at Our Core

We are deeply involved in day-to-day operations, driving innovation and growth through hands-on management, product development, and restructuring.

Our goal is to transform these businesses into high-growth platforms, leveraging expertise in both operational efficiency and cutting-edge technology.

The Film Industry Analogy

Traditional Venture Studios are like movie studios — they create companies from scratch, just as film studios create new movies.

At ICAREX, we take this concept further. Instead of starting from scratch, we acquire "films" (established companies) that have strong potential but need a creative touch.

Just like Marvel Studios turned a classic comic book universe into a multi-billion-dollar blockbuster franchise, we take existing businesses and expand their horizons through bold innovation, operational improvements, and strategic growth—unlocking their full potential.

While traditional Private Equity firms focus on cutting costs and squeezing efficiencies, they often lack the operational expertise to drive innovation.

Their approach is typically about optimization, not transformation.

In contrast, with our Equity Venture Studio model, we combine the strategic vision of Private Equity with the hands-on, innovation-driven mindset of a Venture Studio.

Faqs

The EVS model combines the capital leverage of private equity with the operational andtechnological expertise of a venture studio. Unlike traditional private equity, which oftenfocuses on financial restructuring, cost-cutting, and efficiencies, EVS takes a hands-on,transformative approach to modernize the core operations of legacy businesses. Thismeans we don’t just optimize—we fundamentally upgrade a company’s technology,operations, products, and team. Additionally, unlike venture capital, which typicallyinvests in startups and high-growth companies, EVS focuses on established businesseswith proven revenue streams, using our model to unlock hidden value and position themfor long-term growth.

Legacy businesses offer several strategic advantages. First, they come with established customer bases, brand recognition, and proven revenue models, all of which reduce the market risk associated with investing in startups. These businesses often know their markets intimately and have deep industry expertise, but they may lack the tools or talent to fully realize modern efficiencies and technological innovations. This is where the EVS model excels—we unlock value by modernizing their operations and product offerings, which can lead to substantial returns. Moreover, as many legacy businesses lag in digital transformation, they represent a large, untapped market with significant upside potential compared to the often saturated and competitive tech-startup ecosystem.

The EVS model is highly scalable due to its standardized yet flexible approach to transformation. Our process emphasizes core principles—like digital modernization, operational efficiency, and talent revitalization—that are applicable across a wide range of industries. By focusing on incremental yet high-impact upgrades and leveraging a repeatable framework, we’re able to apply this model to diverse sectors, from manufacturing to consumer goods. While the specifics of each transformation may vary by industry, our overarching method allows us to scale the EVS model across multiple companies, creating a portfolio of modernized, high-value businesses. This adaptability is what makes the model not only scalable but also broadly applicable across traditional and specialized industries alike.

A typical transformation timeline under the EVS model spans approximately 24 to 36 months. In the initial 6 months post-acquisition, we focus on in-depth assessments and quick wins, addressing immediate operational inefficiencies and introducing foundational technology upgrades. Over the next 12 to 18 months, we drive deeper transformations, including product innovation, advanced digital tools, and workforce enhancements. By the two-year mark, we often see substantial improvements in performance and valuation, with further value being realized in the following year as upgraded products and new revenue streams mature. The timeline is structured to deliver early operational improvements and build momentum toward the full 500% value increase, positioning the company for both immediate gains and sustained long-term growth.

We use a rigorous selection process to identify target businesses that exhibit strong
fundamentals but have untapped potential due to outdated practices. Our criteria focus
on three main factors:
1. Revenue and Market Position: We target companies with stable revenue streams,
typically between €1 million and €100 million, and a strong customer base within a
viable market.
2. Operational Gaps and Digital Lag: We look for businesses that show clear
opportunities for modernization, such as outdated systems, under-leveraged
technology, and lack of digital or operational efficiencies.
3. Scalability of Transformation: We evaluate whether the company's core
operations and product offerings can benefit from digital upgrades, product
innovation, and operational restructuring. We avoid companies in heavily declining
industries or with limited market prospects.
By focusing on these criteria, we ensure that each target has the foundational strengths
and market potential needed for a successful transformation under the EVS model.

Investors in the EVS model can expect an ROI that significantly outpaces traditional private equity returns, primarily due to our hands-on, transformative approach. While traditional private equity often delivers annual returns in the range of 15–25%, our model targets a 500% increase in valuation over a 3-year period. This is achieved through strategic upgrades that fundamentally enhance a business’s performance and market position, making our model more high-growth than traditional, cost-cutting-focused PE investments. Our structured framework for digital and operational upgrades enables scalable value creation, yielding returns that rival high-growth investments while backed by the stability of legacy business fundamentals.

Investing in legacy businesses does involve unique risks, such as outdated systems, workforce challenges, and market shifts. However, our EVS model is specifically designed to mitigate these risks through rigorous due diligence and targeted operational improvements. Before acquisition, we carefully evaluate each company’s market viability and operational gaps to ensure it aligns with our transformation criteria. Post-acquisition, we implement phased upgrades, starting with foundational improvements that immediately reduce inefficiencies and enhance resilience. Additionally, by diversifying across multiple legacy sectors, we create a balanced portfolio that reduces exposure to industry-specific risks. This structured, multi-faceted approach minimizes overall risk while optimizing value creation.

Pre-transformation, valuations are typically based on industry benchmarks and multiples, often around 30% of annual revenue for under-optimized legacy businesses. We acquire companies at a discounted valuation due to operational inefficiencies or limited digital integration, which positions us for substantial value uplift post-transformation. The 500% increase is not arbitrary; it’s based on actual case studies where our approach has generated similar value uplift through comprehensive upgrades in technology, operations, and product offerings. While the exact figure may vary per business, our track record and structured process offer strong predictability and reliability for this targeted uplift.

Investors can begin seeing returns as early as the first 12–18 months. While exit remains a primary point of significant return realization, our model also allows for dividends and profit-sharing from improved cash flows post-transformation. As operational efficiencies and revenue gains take effect, some portfolio companies may distribute profits back to investors, providing an earlier return on capital. The exact timing and structure vary by investment, but our goal is to offer both short-term gains through dividends and substantial long-term returns upon exit.

The financial structure in the EVS model is strategically divided to maximize capital efficiency. Approximately 50-60% of the initial capital is allocated to the acquisition of each target company, securing control and positioning us to drive transformation. The remaining 40-50% is directed toward operational upgrades such as technology integrations, talent acquisition, and product development, which fuel growth and increase valuation. This balanced allocation ensures that we’re both securing valuable assets at a favorable price and investing sufficiently in their transformation to realize significant value creation. The exact distribution may vary depending on specific business needs and growth opportunities identified during due diligence.

Disclaimer

The information provided on this website, including descriptions of the Equity Venture Studio (EVS) model, case studies, and related materials, is for informational and educational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities or investment products. The EVS model and associated investment opportunities are intended exclusively for qualified or accredited investors who meet specific financial and regulatory criteria. Please note that our formal investment structure is currently being established in Estonia, and any information provided here reflects our preliminary concept and operational vision based on our proof of concept (POC). The opportunities described will be open to qualified investors only. This website is not intended for general public distribution, nor is it directed at retail investors. If you have questions regarding your eligibility or wish to learn more, please contact us directly.