The private equity fund GPEF, managed by Genesis Capital and focused on investments into small and medium-sized enterprises in the Czech Republic and Slovakia, achieved extraordinary success. After the completion of the sale of the nearly 40-percent share in the Gumotex company, the total appreciation of the funds invested into the Fund surpassed 100 percent. Expressed in terms of the internal rate of return, that means a return of more than twenty percent annualy. This is an above-average result, given the domestic conditions for investing into small and medium-sized companies.
“To the investors in the GPEF fund, we have already ensured an appreciation doubling their investment; but the final yield will undoubtedly be higher, as some of the companies into which the GPEF invested still remain in our portfolio,” said Jan Tauber, the Managing Director of Genesis Capital. According to him, it is also important that GPEF’s resources have supported the growth of its portfolio companies and contributed to the creation of new jobs.
“We are pleased by the success of the GPEF fund, which has, in spite of the present turbulent environment on the markets, managed to double the value of the invested funds. By investing into the Fund, we wanted to support the success and competitiveness of high growth potential companies that focus on traditional industrial disciplines and that belong to a segment that is of importance to our bank. We continue with our support of companies active on the Czech market, which we commenced ten years ago, after Erste Bank entered Česká spořitelna,” said Jan Brabec, Director of the Česká spořitelna Investment Banking Section.
The GPEF fund (Genesis Private Equity Fund) is administered by Genesis Capital, one of the largest private equity fund managers in the Czech Republic. When the fund was established in 2003, its volume was 30 million euros. The main investors were the European Investment Fund (EIF, a company of the European Investment Bank for venture capital and guarantees), Česká spořitelna, the European Bank for Reconstruction and Development, and Letterkenny Holdings Limited (an investment company managing the assets of the family of Lakshmi Mittal). Between 2003 and 2007, all of GPEF’s resources were invested into 12 portfolio companies, including several well-known ones, such as AB Facility, CCS Česká společnost pro platební karty, Energetické strojírny Brno, and Gumotex, as mentioned above. Of the companies into which the GPEF has invested, those remaining in its portfolio include the leading Czech clothing company pietro filipi, the producer of sanitary equipment Roltechnik, and the machinery company CTS – servis.
Companies into which the GPEF fund has invested
AB Facility a.s. (year of entry: 2003, exit: 2011)
Candy Plus, a.s. (entry: 2004, exit: 2009)
CCS Česká společnost pro platební karty a.s. (entry: 2005, exit: 2006)
CTS - servis, spol. s r.o. (entry: 2007)
Energetické strojírny Brno, a.s. (entry: 2006, exit: 2008, 2010, 2011)
ETARGET (entry: 2006, exit: 2007)
Gumotex, akciová společnost (entry: 2006, exit: 2011)
Nový Úklid, a.s. (entry: 2008, exit: 2011)
pietro filipi, s. r. o. (entry: 2004)
Roltechnik, spol. s r.o. (entry: 2007)
Sklářská huť s.r.o. (entry: 2004, exit: 2006)
Vltava.cz, a.s. (entry: 2005, exit: 2010)
About Genesis Capital
For more than ten years, Genesis Capital has been offering financing to small and midsize companies in the Czech Republic and Slovakia, to support their growth and development. Via its private equity funds, Genesis Capital has already supported more than twenty dynamic Czech and Slovak businesses, many of which have become cutting edge in their chosen field, thanks to their relationship with Genesis Capital. In total, Genesis Capital has provided more than 2 billion Czech crowns in growth capital for companies in the Czech Republic and Slovakia.
Since its inception in 1999, Genesis Capital has managed three private equity funds with a total volume of almost € 100 million. The first two funds have already fully committed their capital. At present, Genesis Private Equity Fund II, with a volume of € 40 million, is open and available to finance prospective investments. The companies into which Genesis Capital has invested include AB Facility, pietro filipi, CCS, ETARGET, Gumotex, Energetické strojírny Brno, Roltechnik, Profimedia, Vydis, GTH CATERING, and others.
In the present environment, marked by difficult access to standard bank financing for small and medium-sized enterprises, Genesis Capital funds provide an advantageous alternative for acquiring the required capital for companies with growth potential; the funds also focus on buy-out financing. Their investors include the European Bank for Reconstruction and Development, Česká spořitelna, and the Belgian investment company Gimv.
Contact for more information:
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