An Owner Buy-Out (OBO) enables an entrepreneur-shareholder to partially monetise their stake by selling a portion of their capital to a private equity fund via an LBO holding structure, while retaining a significant reinvested participation. The OBO achieves two simultaneous objectives: immediate cash liquidity for the entrepreneur (partial exit) and ongoing participation in future value creation (re-investment). It combines LBO leverage mechanics with a tailored management package realigning the entrepreneur's incentives with the fund's value creation objectives.

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Example: a 55-year-old Swiss entrepreneur holds 100% of a CHF 20.0 million valued company. An OBO enables them to sell 60% via a holding (receiving CHF 12.0 million immediately) while reinvesting 40%. The NewCo is financed with CHF 8.0 million senior debt and CHF 4.0 million equity co-invested by the fund. The entrepreneur receives immediate liquidity of CHF 12.0 million and retains upside on the 40% reinvested interest through the future exit.

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Hectelion structures OBOs as partial monetisation solutions for entrepreneurs seeking to secure their wealth while continuing to drive business growth alongside a professional investor.