As advisors to private equity funds, we provide access to their resources and capital to finance acquisitions and enable companies to grow.
We seek out investment opportunities in dynamic companies with high growth potential operating in the Czech Republic, Slovakia, Poland, Hungary and Austria.
We assist in increasing the value of capital of the Genesis Funds’ investors - leading international financial institutions.
Since our foundation in 1999, we have advised four private equity funds with cumulative size of over 170 million euros, or over 4 billion Czech crowns.
We have supported the growth and development of over 30 companies, covering a range of diverse sectors and businesses.
We offer access to capital to support and finance the growth of small and medium-sized enterprises in our region.
We provide financing for management buy-outs, management buy-ins and leveraged buy-outs.
The current fund, Genesis Private Equity Fund III (GPEF III), has over 80 million euros at its disposal.
GPEF III is a general fund focused both on the traditional industries and the service sector.
The outline of the investment process provided below is only informative. The actual process and duration may differ, based on the nature of the particular transaction and investment.
For our initial analysis and valuation, we need to obtain basic information about the company, its commercial activities, products and services, and financial results. Before we obtain information about a company, we are prepared to sign a confidentiality and business information secrecy agreement.
Should we find the proposed investment opportunity to be of interest, we proceed to conduct our own analysis and valuation of the investment. We propose the volume of the funds to be invested, the indicative price, the share in the company, and other conditions, based on the required return on the investment and its valuation at the time of exit/realisation.
We present the terms and conditions of the planned investment, set on the basis of our analysis and valuation, for further discussion with the company’s owners. Once we reach an agreement on the basic parameters of the investment, a preliminary agreement is formalised in the form of a so-called Term Sheet – a non-binding agreement on a future agreement, embodying basic business and legal conditions, and including a time-schedule for the transaction. We present the conditions of the investment proposed at this stage for initial approval to the Fund’s Investment Committee.
Once the Term Sheet is signed with the owners, we commission reputable law firms and audit companies to carry out legal and financial due diligence. Should the type of business require it, we also commission an environmental audit. All the above services are provided by reputable companies accepted by the international investment community.
On the basis of the outcome of due diligence, the precise volume of the investment is specified along with the Fund’s ownership interest in the company. If no fundamental discrepancies emerge from due diligence, as compared to the information we obtained about the company at an earlier stage, the price and other conditions do not substantially differ from those agreed in the original Term Sheet.
At the next stage, our legal advisors draft contractual documentation, which reflects the investment conditions and terms set out in the Term Sheet. These include, in particular, a share purchase agreement, an agreement on increasing the company’s registered capital, and a shareholders’ agreement, if required.
Final conditions and structure of the transaction, including an internal information memorandum and reports by external advisors, are presented to the Investment Committee for recommendation.
Legal documentation is signed and the transaction concluded.
In each of its investments, Genesis Capital significantly relies on the management, to which it grants considerable flexibility in the strategic and operative management of the company. Our representatives do not engage in day-to-day operating matters of its portfolio companies, focusing usually only overseeing the companies through their statutory bodies.
The goal of Genesis Capital is to maximise the company’s value and to prepare it, in structural and strategic terms, for a successful sale, usually within a time-frame of three to seven years. In managing the process of exiting from the investment, Genesis Funds also frequently cooperates with reputable consulting firms and specialised advisors.