Investment strategy

We focus on:

Growth capital – This form of investment eliminates the draining of funds to repay debts and all free cash can be invested in growth opportunities.

Management buyouts (MBO’s) – Many owners who established their businesses in the first half of the 1990s will eventually face succession issues. Investing in management buyouts will enable existing managers to acquire ownership, and will strongly motivate them to further develop their businesses.

Support for external managers in buying selected companies (MBIs) – there are already many experienced management teams in the Czech Republic who are looking for suitable companies which, if properly managed, provide an opportunity for premium valuation of the invested funds. The fund will work with experienced HR advisers and management teams in identifying and realizing such opportunities.

Leverage buyouts (LBO’s) – banks operating on the Czech market have available sufficient liquidity and they are increasingly more willing to participate in the acquisition financing even of small projects. The fund will look for stable, healthy businesses with strong cash-flow, whose purchases will be funded by a combination of equity funds and bank financing. By repaying the acquisition debt from the sources generated by the purchased company, the value of the shareholdings will automatically increase.

Investing in start-ups and early stages of development – in exceptional cases where a combination of market opportunity, business model, and strong management team will represent a convincing, strong growth opportunity, the fund will invest in technological projects in their early stages of development.