REGIONAL FOCUS

In the world affected by global financial turmoil we are focused on clearly defined CEE market segments which are offering unique high-yield investment and business opportunities

Our primary focus is given to more developed EU member countries embracing Czech Republic, Slovakia, Poland, Slovenia and Romania which have solid economic foundations to accelerate future growth. Secondary focus is given to pre-EU-accession countries with emphasis on high growth outlook Balkan markets: mainly Serbia and Croatia.

In last decade the CEE region has enjoyed the fastest growing GDP and largest foreign direct investments per capita in Europe. The region demonstrates relative stability and mid-term growth potential despite the global financial crisis. Along with its favourable geographical position, advanced transport network, skilled workforce, unsaturated regional market and local market demand with lasting connections to markets of Western Europe, CEE is clearly a place offering high yield investment opportunities with excellent risk/return profile.

In central Europe, macroeconomic fundamentals are strong. In the past two decades, the CEE economies have been introducing reforms and learning lessons, with bank bail-outs and privatisations. As a result, these economies have much lower subprime exposure - CEE banks had tighter lending criteria and employed less securitisation. Capital is mostly based on shareholder equity and CEE banks displayed a healthy loan/deposit ratio.

Economic slowdown in Western Europe has had negative effects on CEE markets, but more benign cost base  of CEE markets motivates new inflow of foreign capital with perspective to to keep CEE economies outperforming Western European countries.

The CEE region offers wide spectrum of attractive private equity investment opportunities across numerous industries. Success of private equity in CEE markets will be driven by investments in growing or undervalued companies rather than high leverage.

The mentioned factors combined with the right timing and our knowledge of CEE markets provide a unique chance to benefit from exceptional market opportunitiy, value growth potential and future expansion of the region.

• Exceptional opportunities created by current financial turmoil (distressed owners selling at low valuations)

• Generally more favourable valuations during next two years due to economic slowdown

• First wave of local CEE owners seeking exits

• Successful local entrepreneurs seeking expansion capital

• Potential for consolidation on local/ regional CEE level

• Underperforming, poorly managed and undervalued companies

• Privatizations

• Growing demand in services related sectors

• Need for infrastructure investments CEE  

OUR NICHE FOCUS ON SERBIA

Serbia today is one of the most attractive emerging economies of Europe; after two decades of isolation and economic sanctions it enters into pre-accession phase to EU and provides unique high-yield investment opportunities in underdeveloped market segments through private equity and privatizations, with growth stimulated by transition into European market structures and strong local demand.

Serbia offers attractive emerging market opportunities with interesting risk-return profile. Transformation of the economy and privatization process provide interesting opportunity to acquire undervalued assets with high-growth potential under attractive terms.