PRIVATE EQUITY

AETHEON CAPITAL acts as private equity investment manager focused on selected investment situations in the CEE:

BUYOUTS AND PRIVATIZATIONS

  • Mid-market buyouts including LBOs, MBOs/MBIs

  • Expansion financing enabling local/regional growth

  • Consolidations: value growth based on horizontal or
    vertical integration with add-on investments

  • Distressed assets: buyouts of undervalued, underperforming or distress companies and their transformation

  • Privatizations: Serbia, Montenegro and neighboring Balkan countries

DISTRESSED ASSETS

    

Despite the fact that CEE mid-term growth outlook remains strong, current global financial turmoil starts to unveil interesting investment opportunities across the region. Some of the private owners in distress situation are forced to sell assets under forced conditions. Other opportunities are arising in banks which are starting to consider disposal of non-performing loans or pledged assets (shareholding) at discounts. Local presence is crucial for spotting and execution of these time-limited investment opportunities. 

 

DIRECT INVESTMENTS

    

AETHEON CAPITAL acts in selected cases also as an investment manager for direct private equity investments on behalf of its clients and investment partners. We deliver superior investment management services along entire investment cycle: from identification of investment opportunity, through execution of acquisition, transformation and operational management, to exit. 

 

  

  • Origination - identification of interesting off-market opportunities in specific industries and markets

  • Market research

  • Deal assessment - comprehensive analysis of investment opportunities

  • Strategic and Commercial due diligence

  • Management of tax, accounting and legal due diligence  

  • Valuation

  • Deal structuring

  • Deal negotiation

  • Post-acquisition management of portfolio companies

  • Exit strategy and exit execution

DEAL SOURCING

    

We utilize our own professional network with powerful support of well connected Advisory Board with access to wide range of unique off-market targets. We utilize wide industry expertise, professional networks across the region, local market intelligence and knowledge combined with local presence. We also work closely with financial institutions active in the region on management solutions for distressed asset portfolios, which enables us to source attractive off-market distressed assets opportunities.

   

SECTOR FOCUS

    

Primary focus on sectors with high growth potential through efficiency improvement and market consolidation or non-tradable sectors driven by local demand:


  

  • Manufacturing

  • Engineering with emphasis on energy

  • Aerospace

  • Telco equipment and non-cyclical industries including R&D, technology and related services

  • Business support services (including IT & telco services)

  • Food processing & beverages

  • Agriculture

  • Consumer products & services

  • Specialized building materials and construction industry related products and services, including engineering

  • Power engineering

Secondary focus on regionally undervalued, anti-cyclical or infrastructure related sectors:
 

  

  • Infrastructure, transportation and logistics

  • Healthcare, hospitality and leisure sector

  • Waste management, recycling and renewable energy

INVESTMENT CRITERIA

    

We maintain rigorous investment process throughout the entire investment cycle, governing selection of targets, acquisition process, transformation and exit.

  • Robust business case showing satisfactory expected return, investment horizon and attractive exit route

  • Target size: typical enterprise value between EUR 10 and 50 million; smaller targets will be considered in case of attainable synergies with other portfolio companies

  • Skills, experience and achievements of management

  • Robustness of the business model, value growth potential, solid market positioning, high barriers for entry or other distinctive competitive advantage

  • Potential for consolidation/integration with other companies in the portfolio

  • Control of the assets: Acquisition of controlling, majority or full ownership stakes in target companies; Strategic minority in case of potential for further increase

  • Equity and debt financing: Invested equity is effectively leveraged on individual investment basis

  • Exit Strategy

  • Average holding period is expected to be
    3 – 5 years

  • Exit options are carefully investigated for each investment and the most suitable and profitable strategy is selected