While the name Noshaq is increasingly featured in Belgian and international investment documents, it remains unfamiliar to many. This lack of recognition is not unexpected, given that the investment firm primarily operates behind the scenes with the goal of developing and transforming the economic landscape of Liège city and province.
Noshaq, however, is a significant entity in the investment world, boasting a portfolio valued at over €700 million, with 480 holdings and an average annual investment budget of €122 million over the past five years. Investment Officer spoke with CEO Gaëtan Servais to learn more about Noshaq’s origins, strategy, and future prospects.
Change in mentality
Noshaq was established in 1985 as Meusinvest, a public entity created by the Fund for the Restructuring of National Sectors in the Walloon Region (FSNW), aimed at assisting former industrial companies in distress. From 2008, the organization pivoted, branding itself as a fund manager and, according to some in the industry, a semi-public private equity firm.
“In 2019, we decided to definitively leave our past behind by adopting the Noshaq name, a nod to one of the highest peaks in the Himalayas. We selected this name for its appealing sound and its revolutionary connotations. Currently, we manage 17 different funds, and we also have private shareholders who demand a specific return on their investment,” explained CEO Gaëtan Servais.
These shareholders include the Walloon inter-municipal company Nethys, which, after divesting its stake in telecoms group Voo in 2023, injected €39.8 million into Noshaq via a capital increase, taking a 22.39% share. The investment firms Wallonie Entreprendre (39.63%), recently established from the merger of public investment groups SRIW, Sogepa, and Sowalfin, and NEB Participations (20.86%), owned by Belfius, Ethias, and Nethys, are the other majority shareholders.
According to Servais, the transformation from a public fund to a more private investment company is ongoing, although Noshaq’s DNA and corporate culture—highlighting productivity and efficiency—have already seen substantial changes. “Previously, companies approached us for finance; now, our managers proactively seek out lucrative opportunities. We analyze business models and the quality of management teams. Nowadays, we operate much more selectively than before, supported by a team of 57, primarily specialist engineer-analysts, and a strategic change team of 17.”
Noshaq’s website states that it offers bespoke financing solutions to entrepreneurs. “We prefer taking equity stakes, but convertible bonds are also an option, particularly when enhancing the company’s value proves challenging,” Servais added.
Liège as economic hub
Liège and its province are the gravitational center of the group’s activities. “Our major inspiration is the Limburgse Reconversie Maatschappij, which has revitalized the Hasselt region and the province of Limburg. We aspire to emulate this dynamic in our region,” said Servais. However, Noshaq’s investments are not limited to the Liège area. “We invest globally in companies that can contribute to Liège’s economic fabric, a fact often misunderstood when we invest outside our immediate region.”
Practically, the group focuses on developing ecosystems around sectors such as biotechnology, medical technology, energy, industrial redevelopment, agriculture, and the digital economy.
Noshaq also has broader ambitions, planning to develop a cluster in Liège around tourism, sports technology, and entertainment. “We’re achieving this by pooling expertise, capital, and financing solutions, with LégiaPark’s transformation into a biotech park serving as a prime example. Ultimately, we aim to become a magnet for businesses and a benchmark in Europe. Companies seeking expansion or additional funding should automatically consider us,” said Servais.
To date, Noshaq remains relatively unknown to the wider public, primarily operating in a B2B context.
“We prefer not to be in the spotlight, but rest assured, we are well recognized among entities such as Flemish biotech funds, incubators, and IMEC, the University of Leuven’s research centre for nanoelectronics and digital technology,” Servais said.
Portfolio reduction
However, one might question whether Noshaq, with nearly 480 holdings, has overextended itself. “Our investment budget continues to increase, yet we’ve struggled to reduce the total number of holdings. Nonetheless, we are pursuing a more active exit strategy, having disposed of about 30 holdings last year while investing in an equal number of new ones,” Servais said.
He noted that reducing the portfolio is not straightforward. “To adequately mitigate risks in biotech and life sciences, we need at least 80 companies in this segment. Currently, we have 80 of the 143 companies in the sector based in Liège.”
This strategy is essential, especially given the challenges faced by the troubled pharmaceutical company Mithra, part of Noshaq’s portfolio. “We recognize that 20% of the biotech companies we invest in will fail, and 60% will not be profitable. Thus, all profits must come from the remaining 20%. Despite the negative press surrounding Mithra, which also impacts us, I want to highlight that in 2019, we sold nearly one million shares in Mithra at €26 each, realizing a capital gain of €22 million,” he said.
Looking towards an IPO
Is an initial public offering in Noshaq’s future? “We considered an IPO in our strategic plan for 2021-2026 but ultimately decided against it as we were able to secure our financing through other means, and our portfolio still lacked maturity. However, this will be revisited in our next plan for 2026-2031, where a stock market flotation is certainly one of the possibilities,” concluded Servais.