The sub-fund is established with the purpose of achieving long-term appreciation of invested capital through investments in Czech and Slovak private companies, aiming to accelerate their growth and maximize their value. This is achieved primarily by supporting the optimization of production resources, expansion into new markets, development of new products and services, and enhancement of productivity and management efficiency. The sub-fund offers investors the opportunity to invest in a sector that has historically demonstrated above-average returns. Although past performance is not a guarantee of future returns, it provides a long-term reference that cannot be overlooked.
Investments in private enterprises are risky, low in liquidity, and long-term. On the other hand, they offer attractive returns on the capital invested. The success of these investments relies on an experienced investment manager, thorough preparation, and a complete understanding of every aspect of the transaction. This process is carried out by a team of investment professionals with extensive combined domestic and international experience in private equity and capital markets.
In the Czech Republic, small and medium-sized enterprises (SMEs) hold a significant share of the market, representing over 90% of all businesses. These enterprises are also important employers, exporters, and importers. We estimate that a substantial portion of these companies intends to invest in their development over the next five years and will therefore require financial resources. This creates a substantial opportunity for private capital, which has so far been relatively inactive in the Czech SME sector. There is a relatively small number of professional investors in this field, and annual private equity investments are below the EU average in proportion to GDP. Given these circumstances and the ongoing economic recovery, we can expect strong demand for private investment. This is the reason behind the creation of the BHS II. Sub-Fund BHS Private Equity Fund, which invests in small and medium-sized enterprises in the Czech Republic and Slovakia, aiming to accelerate their growth and offer investors highly attractive returns.
This type of investment offers investors the potential for above-average returns. The BHS II. Sub-Fund BHS Private Equity Fund aims for a return on investment exceeding 15% annually. Investments are directed toward the development of selected companies to increase their value. Risks are minimized by ensuring that no more than 35% of the sub-fund's assets are invested in a single project within one asset class. Preference is given to stable companies with a strong track record and a high-quality management team. The sub-fund actively participates in the strategic management of companies within its portfolio, supporting expansion into new markets, profit growth through investment in high-value product/service development, and enhancing productivity and operational efficiency. The sub-fund also supports optimization of production resources and operations.
An investor who acquires a share of the sub-fund's assets by purchasing investment shares at their current value.
It audits the sub-fund's accounts and compliance with the statutes and investment rules (Kreston Audit FlN, s.r.o.).
The Czech National Bank grants approval for the establishment of the sub-fund, oversees the activities of the sub-fund, the sub-fund manager, and the depositary bank.
It continuously monitors the management of the sub-fund's assets. The purpose of each item in the sub-fund's account must be documented for the depositary, and it ensures the safekeeping of the sub-fund's securities (ČSOB a.s.).
Qualified Investors Investment Fund under § 154 of Act No. 240/2013 Coll., on Investment Companies and Investment Funds (ZISIF).
Each investment proposal is assessed for economic feasibility (AEV) before implementation, with the financial director of the investment company submitting it for subsequent review by the sub-fund's investment committee. The committee evaluates the proposal in terms of alignment with the sub-fund's investment strategy and then issues its opinion or recommendation for implementation. The final approval is then granted by the director of fund management for the investment company.
The investment company manages the sub-fund's assets according to the sub-fund’s statutes and in compliance with ZISIF. It acts on behalf of the sub-fund, signs contracts for the sub-fund, fulfills the sub-fund’s obligations towards state administration (accounting, taxes), the Czech National Bank (monthly financial reporting, information on changes), and the depositary bank. The activities of the investment company are continuously monitored by the depositary bank and the Czech National Bank. The investment company informs sub-fund shareholders of the share value, issues shares, and maintains a list of shareholders (Versute investiční společnost, a.s.).
The Investment Committee evaluates investment opportunities based on economic feasibility analysis; it assesses them and submits them for final approval by the investment company's director. The committee consists of six members.
The fundamental document of the sub-fund defines the investment strategy, investment limits, decision-making and management rules, the method and frequency of calculating the investment share value, terms and conditions for redeeming investment shares, specifies the scope of the depositary’s activities, and outlines the sub-fund’s information obligations.
The supervisory body of the fund elected by the general meeting of the fund/sub-fund according to the statutes, with its members registered in the commercial register.
An authorized representative appointed by the statutory director to act on behalf of the fund/sub-fund, registered in the commercial register.
BH Securities a.s. is a licensed securities dealer and a member of the Prague Stock Exchange. Established in 1993, it is part of the PROXY – FINANCE, a.s. holding. BH Securities ranks among the most significant non-bank financial entities in the Czech Republic. With its long-standing operations, the company has gained extensive experience, earned customer trust, and established a strong position in the Czech capital market. It offers comprehensive capital market services to both institutional investors and individuals. The company's main activities include trading securities on its own and clients' accounts domestically and internationally, as well as managing client portfolios (asset management).
Versute Investments a.s. is an investment and advisory company operating primarily in the small and medium-sized enterprise (SME) sector in the Czech and Slovak Republics. The company engages in both proprietary capital investments and co-investments with business and investment partners. It assists in securing investment funds, developing financial and organizational structures, and provides transactional and strategic advisory services, including support during due diligence processes and other related activities.
The sub-fund is established with the goal of long-term capital appreciation through investments in Czech and Slovak private companies, aiming to accelerate their growth and thus maximize their value, primarily by supporting:
The investment team monitors the relevant market and seeks opportunities to acquire suitable assets.
The portfolio of investment opportunities is regularly monitored and discussed at the investment committee level, which reaches a consensus on which assets are attractive enough to proceed to the due diligence phase. The investment committee also determines the scope, format, and timeline of the due diligence process.
Personnel, management, commercial, market, financial, and legal aspects are primarily assessed. In relevant situations, the quality of business insurance, environmental impact, safety, and other factors are also considered. Both internal resources and the sub-fund's professional external advisors are utilized in this process.
In the case of positive due diligence results, the investment team presents an investment proposal to the investment committee. The proposal includes a detailed analysis of the opportunity, a proposed transaction structure, and a recommended investment strategy.
The investment committee issues, along with its approval for execution, a recommendation for a final legal and financial audit, which is conducted by authorized external auditors.
Based on the audit results, which include a complete draft of the transaction documentation, the investment committee recommends execution, subject to approval by the investment company's director of fund management.
The investment team regularly monitors the performance and business and financial plans of portfolio companies, evaluating them in the context of the relevant market conditions to identify the best opportunities for realization (sale) of the asset. The investment team submits sale recommendations for review by the investment committee. Sale execution is subject to approval by the investment company’s director of fund management.
