Having sold his business, Maximuscle, to GlaxoSmithKline, Zef Eisenberg is now launching a fund to invest in health and fitness businesses.
Eisenberg founded Maximuscle in 1995, but sold it last month for £162m. Despite being offered a number of positions as a consultant, he has opted to do his own thing. “I’ve decided to walk away completely. There are too many exciting opportunities around – as a consultant, I would have had various obligations. It’s time to do something new,” Eisenberg explains. Eisenberg has now founded Maxicorp, a Guernsey-based fund looking to invest in health food brands, nutritional supplements and gym chains. “The businesses will have a health and wellness angle to it. I’m not interested in confectionary.” Since leaving Maximuscle, Eisenberg has been looking at business plans from three entrepreneurs. “We’re looking at three businesses already, but one investment this year would be nice – once you’ve done the due diligence, these things often don’t look as attractive as the summary sheet.” He says he’s been surprised by the number of pitches he’s seen in which entrepreneurs made unrealistic projections and had exaggerated the quality of their accounts. “Many companies that we’ve seen try to impress investors with accounts that aren’t foolproof. Once you delve in and ask questions, the projections start to fall over. It’s frustrating. You get a lot of salesmanship, everyone ends up wasting time and you lose trust. We’ll invest in companies that are realistic and sensible and can back up what they say.” Maxicorp will insist on a board seat in each investment, Eisenberg says. “My whole remit is to be fairly hands on. We won’t make any investment unless I’m able to help manage and provide the expertise that I have.” Eisenberg says he’s been looking to invest in a chain of gyms for some time, but has been frustrated by a “mature and saturated market” in the UK. Now, he wants to back growing chains targeting emerging markets in Eastern Europe and Asia. “We’re looking at deals at the moment that are as small as £1m, but that would be with the requirement for follow-on money. We’ll also go up to as much as £150m by doing joint ventures with other funds and partners. If I find an opportunity, the size isn’t relevant. For the right business, I’ll easily find the right partners to work with.” Picture source
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.