Genesis Capital, one of the largest private equity groups in Central Europe, is preparing to launch a new fund, Genesis Private Equity Fund IV (GPEF IV); the sixth private equity fund of Genesis Capital in the 20 years since its establishment. In a similar manner to its predecessors, GPEF IV will also focus on investments into small and medium-sized enterprises with high growth potential in the Czech Republic, Slovakia, Poland, Hungary and Austria. The fund’s target size is EUR 150 million and its first closing is expected at the beginning of 2021.
"We are pleased to be able to contribute to the development of businesses in the Czech Republic, Slovakia and neighbouring countries of Central Europe through our private equity funds. We believe that GPEF IV will facilitate growth of at least a dozen Central European companies that will be interested in this type of equity financing," says Jan Tauber, Chairman of Genesis Capital Equity. "We want the new fund to replicate the attractive performance of our previous funds," adds Jan Tauber.
“GPEF IV will invest in established companies with a strong growth potential, typically in situations where successful founders are considering suitable successors, or are looking for capital to grow their businesses, expand internationally or invest in innovations, or alternatively in cases where multinational groups looking to divest their non-core business units are searching for a suitable partner. We see a number of opportunities in this segment of the market which itself is growing and becoming more regional, so we decided to launch a new bigger fund to support them” says Ondřej Vičar, Managing Partner at Genesis Capital Equity. When speaking about GPEF IV’s strategy, he notes that “the fund will invest across a wide range of industries, but with preference for sectors where Genesis Capital funds have had a strong historical track record, such as B2B services, light and medium manufacturing, IT services and specialised retail and consumer services.”
Regarding its sixth private equity fund, Genesis Capital will follow the same investment strategy that has proven successful in the past. "We identify suitable investment opportunities using several basic criteria," explains Radan Hanzl, Partner at Genesis Capital Equity. "First and foremost, the company must have a strong growth potential and demonstrate the ability to formulate and successfully execute its plans. A competent and experienced management team is another highly important factor. We rely on partnership with top executives of the portfolio companies. They usually invest alongside us and share the up-side as well as the risks of the investment,“ adds Radan Hanzl.
“Launching and developing a new fund is a great professional opportunity. We believe that despite the current situation, there are numerous companies with experienced management teams and the ambition of developing their business to a higher level that are at the same time able to efficiently use private equity capital. Our professional investment team at Genesis Capital is ready and looking forward to take on the challenge,” concludes Tatiana Balkovicová, Senior Investment Director at Genesis Capital Equity.
PR representation of Genesis Capital:
Kamil Chalupa, CHM Communications
E-mail: chalupa@chmc.cz; Tel.: +420 602 865 834
About Genesis Capital
Genesis Capital provides advisory to private equity funds (development capital) offering financing for growth and development to small and medium companies in Central Europe. Since its foundation in 1999, Genesis Capital has advised five private equity funds with a total volume exceeding EUR 200 million. These funds have already supported more than 55 companies. It was also thanks to the cooperation with Genesis Capital that many of them rose to the top positions within their fields of activity.
The investors into Genesis Capital funds include mainly international and local institutions such as the European Investment Fund (EIF), Česká spořitelna (member of the Erste group), Amundi Czech Republic (member of the international group Amundi), Kooperativa pojišťovna and Česká podnikatelská pojišťovna (both from the Vienna Insurance Group), Finnish fund-of-funds firm eQ Private Equity, pension fund of a global company, investment company RSJ Investments or a Czech family office SPM Capital. At present, Genesis funds have their share in the following companies - GTH Multicatering, Quinta-Analytica, HP Tronic/Datart, D2G, Sanborn, Stangl Technik Holding, CN Group, 11 Entertainment Group and Summa Linguae Technologies.
Genesis Capital Private Equity Funds are private equity funds aimed at investments into small and medium companies in the Czech Republic, Slovakia, Poland, Hungary and Austria. At present, the investment fund Genesis Private Equity Fund III (GPEF III) is open for investments within this segment with a volume exceeding EUR 80 million and average size of one investment between EUR 4 and 12 million.
Genesis Capital Growth Equity Funds represent growth equity funds focused on investments into smaller and mid-size companies primarily in the Czech Republic and Slovakia with a significant growth potential. Currently active fund is Genesis Growth Equity Fund I (GGEF I) with its current size of EUR 34 million and typical size of equity investments in the range of EUR 1-4 million.