Genesis Capital finalised the fundraising of its new PE fund

Genesis Capital, one of the most established institutional private equity players in Central Europe, has finalised the fundraising of its new fund, Genesis Private Equity Fund IV (GPEF IV), reaching its maximum hard-cap of EUR 150 million. It is already the sixth private equity fund of Genesis Capital in over 22 years since its establishment.

The final closing of GPEF IV concluded with the EUR 15 million commitment from the European Bank for Reconstruction and Development (EBRD), which has returned to the Czech Republic after a pause of 13 years. Anne Fossemalle, Director, Equity Funds at the EBRD, said: “We are excited to support SMEs and mid-cap companies in the Czech Republic in partnership with Genesis Capital, with whom we have a long-standing relationship. The investment strikes right at the heart of the EBRD’s strategy for re-engaging in the Czech Republic in line with the strategic priority to support economic recovery from the Covid-19 crisis, by providing equity support for Czech companies and supporting development of alternative funding sources.”

“The most robust and ambitious fundraising process in the Genesis Capital history has been successfully completed, with GPEF IV reaching its maximum hard cap. We are glad to see the appetite from our long-term institutional investors but also from new reputable parties, some of them investing in the Czech Republic for the first time. We are especially happy to welcome back EBRD on their return to the Czech Republic,” comments Ondřej Vičar, Managing Partner at Genesis Capital Equity.

GPEF IV attracted commitments from a number of other renowned institutional investors: the European Investment Fund (EIF), Česká spořitelna bank (member of the Erste group), two insurance companies of Vienna Insurance Group, asset managers Amundi Czech Republic, Raiffeisen Investment Company, Sirius Investment Company, RSJ Investments, Swiss fund-of-funds Alpha Associates, pension funds of the Lithuanian group INVL, family office SPM Capital and a pension fund of a renowned global firm.

The entry of EBRD brings the total number of institutional LPs of current Genesis funds to 13 investor groups. “Through the continuous growth of assets of our funds combined with an expansion and balanced diversification of their premium institutional investor base, Genesis Capital continues to position itself as a leading institutional private equity platform within its core region of operation,” Ondřej Vičar adds.

In a similar manner to its predecessors, GPEF IV will invest in established companies with an attractive growth profile. It will focus on 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 on cases where multinational groups looking to divest their non-core business units are searching for a suitable partner. 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. These include B2B services, light and medium manufacturing, IT services and specialised retail/e-commerce and consumer-oriented services.

Dentons advises GeneProof

Dentons advises GeneProof on merger with American Laboratory Products Company

Global law firm Dentons advised Radek Horvath and Miloš Dendis, the founders of GeneProof a.s. (“GeneProof”), a leading Czech molecular diagnostics company, in connection with its combination with American Laboratory Products Company, Ltd., a US specialty in vitro diagnostics company, leading to the establishment of ALPCO Group.  The main shareholders of the new group will be Ampersand Capital Partners, a US private equity fund, Radek Horvath and Miloš Dendis.

GeneProof provides customers with technologically advanced solutions in the field of molecular in vitro diagnostics of serious infections and genetic diseases. The ALPCO Group aims to become a global market leader in the diagnostic products market, with broad capabilities spanning novel immunoassay testing kits, real-time PCR testing products, and automated laboratory instrumentation solutions.

Partners Jan Procházka (Prague) and Ilan Katz (New York) led Dentons’ legal team on the transaction. The team included Daniel Hurych, Vojtěch Novák, Adam Přerovský, Petr Kotáb, Ondřej Valeš, Blanka Crháková and Michal Pelikán (all Prague).

Commenting on the transaction, Jan Procházka said: “We are delighted that we have had the trust of GeneProof´s founders to advise them both in the US and the Czech Republic on this transaction.  This deal is part of the inspirational story of two Czech entrepreneurs, who have developed unique technology and know-how and now have taken another bold step to achieve their vision.”

Radek Horvath, the CEO of GeneProof, said: “We were grateful to have Dentons by our side. Their overall performance and cooperation across borders was stunning and I believe they were vital for the success of the transaction.”

ARX acquires Brebeck Composite

ARX Equity Partners (“ARX”), a Central European lower-mid market private equity firm, today announces the completion of the majority acquisition of Brebeck Composite s.r.o., a Czech headquartered manufacturer of composite products from carbon fiber (“Brebeck” or the ”Company”). The financial terms of the transaction were not disclosed.

Brebeck was founded in 2011 by Thomas Brebeck and Marcel Benda, in order to utilise Mr. Brebeck’s extensive track record and expertise in carbon fiber manufacturing in Germany over almost 20 years. Brebeck is now one of the leading European manufacturers of carbon fiber parts and components, used mainly in technically demanding motorsport activity and automotive applications.

In addition to its facility in Senov, Czech Republic, Brebeck also operates internationally through its wholly owned subsidiary in Deggendorf, Germany. The Company generates annual sales in excess of €10 million, with more than 160 employees. Brebeck’s customer base includes several prominent word-class players in the motorsport market, such as KTM AG, BMW AG, Porsche AG and Audi AG.

Moving forward, both founders will retain a significant minority stake in the Company and Mr. Brebeck will continue to drive the further growth and development of the business. The Company’s primary strategic focus will remain centered around servicing its blue-chip, anchor customers in the motorsport and automotive industries while also broadening its product offering to customers in the aerospace market.

Bird & Bird’s Prague office is relocating

Bird & Bird’s Prague office is relocating to Karlín.

After almost 15 years in the Czech market, Bird & Bird’s Prague office will relocate to Missouri Park in Karlín, Prague 8 in October later this year.

Missouri Park is part of the River City Prague urban district project developed by real estate company CA IMMO located on the banks of the Vltava River close to Florenc metro station.

“We have outgrown our current office in the Prague city centre. When looking for new premises we wanted to ensure that the new location not only suited our further growth requirements but above all reflected our core values – a dynamic, innovative, and responsible law firm. At Missouri Park we found everything we were looking for – modern tech facilities, smart energy solutions, as well as a healthy workplace for our people set in city greenery,” says Ivan Sagál, Managing Partner of Bird & Bird for Czech Republic and Slovakia.

“We are starting an exciting new chapter for Bird & Bird in the Czech market and our new office will no doubt support further development of Bird & Bird’s reputation as a strategic partner for innovative projects, often involving disruption or breakthroughs in our clients’ activities or in their sectors,” adds Vojtěch Chloupek, partner and head of the Intellectual Property practice and the Tech & Comms sector group in the Czech market.

In recent years, Karlín has become a vibrant district attracting people, as well as Czech and international companies. Continued investments and development of adjacent areas has produced closer connections with its surroundings, both with the neighbouring Štvanice island and Holešovice district, and with the newly built bridge HolKa which is due to open in spring 2023.

Bird & Bird selected architects from studio archicraft to help with the interior design of the office. Jones Lang LaSalle assisted with consulting services during the premises selection process, negotiated the terms of the lease agreement, and provided project management support.

Bird & Bird LLP is an international law firm which supports organisations being changed by the digital world and those leading that change. Over the years it has become one of the most dynamically growing law firms in the world and is renowned in the field of intellectual property and technology law. It is one of the first international law firms in the world to gain ISO27001 Information Security Management certification.

Dentons advises Draslovka on partnership with Oaktree

Global law firm Dentons advised Draslovka, a Czech-based family-owned global leader in CN-based specialty chemicals, on its strategic partnership with funds managed by Oaktree Capital Management, L.P. Oaktree will invest US$150 million in Draslovka providing preferred equity capital to support the Draslovka Group’s growth strategy. Oaktree’s investment in Draslovka comes on the heels of the company’s recent acquisitions of Chemours’ Mining Solutions business (completed in December 2021) as well as the signed (but not yet completed) acquisition of the Sasol South Africa Limited’s Sodium Cyanide business. Dentons advised both on the Chemours and the Sasol’ deals. Commenting on the transaction, Dentons’ partner, Petr Zákoucký, said: “I am very happy when we can leverage the talent of Dentons’ top lawyers worldwide to help Czech businesses succeed abroad. Raising equity by means of hybrid equity is becoming more and more popular in this process. On top of this, the story of Draslovka is a great inspiration. Based in Kolín, Czech Republic, Draslovka has developed unique technologies and know-how and leveraged it to acquire far larger competitors globally. Oaktree’s equity investment will help Draslovka to push this vision one step further.” Pavel Brůžek, Chairman of the Board of Directors of Draslovka, said, “The strategic partnership with Oaktree marks another significant milestone on our ambitious growth strategy. Dentons’ team has guided us with confidence on several transactions, and their skills and dedication are an essential part of the success we have delivered to date.” M&A Partners Petr Zákoucký (Prague), Rob Irving (Budapest/Prague), Ilan Katz (New York), Namik Ramić (Luxemburg) and Nik Colbridge (London) led the cross-border team working on this equity raise, which included Prague-based Ivo Hartmann, Vojtěch Novák, Michal Pelikán, Lucie Kubínyiová, Barbora Obračajová, Anna Urbanová, Petr Kotáb, Jan Tylš, Justina Bodláková, Martin Fiala, Vojtěch Laga, Tomáš Jonáš, Jana Málková Želechovská, Tomáš Pavelka, Adam Přerovský, Danylo Romashko and Petr Mueller and Luxembourg-based Namik Ramić and Clémence Personne. Dentons provided comprehensive legal advisory, while PwC is acting as financial and tax advisor.

Vesna Sipp joins MidEuropa as Partner

MidEuropa, the leading private equity firm in Central and Eastern Europe, is pleased to announce that Vesna Sipp has joined the firm as partner, Head of Investor Relations and member of the Investment Committee. She will be based in MidEuropa’s London office and will also lead the firm’s ESG and diversity efforts. Vesna was previously Head of Client Relations at ICG and prior to that, Managing Director at Hamilton Lane.

Managing partner Robert Knorr said: “I am delighted to welcome Vesna to MidEuropa. This is an important step in ensuring we continue to provide the highest standards of communication and service to our investors as well as introduce a senior leader to our ambitious ESG and diversity agenda.”

Senior investment partners Pawel Padusinski and Kerim Turkmen added: “Vesna already knows us well as an investor in our funds and as a long-time friend of MidEuropa. We are excited to have her on board and look forward to working with her closely.”

The World’s Leading Private Equity Conference in Poland & CEE

Dear CVCA members,

let me pass the invitation to the Poland & CEE Private Equity Conference 2022, held on the 10th of May 2022 in InterContinental Warsaw.

Top industry professionals and asset managers are gathering for the 8th edition of the Poland & CEE Private Equity Conference hosted by Private Equity Insights. They are ready for a full day of unparalleled opportunities and actionable insights, laying the foundation for future business. Meet 300+ handpicked attendees including prominent private equity investors across the CEE region, as well as global asset managers and get their groundbreaking perspectives. It is the perfect place to meet LPs, GPs, and PE/VC Target Companies.

For more details such as speakers and agenda, click HERE.

We are happy to inform you that CVCA Members are eligible for a special price. If you want to take advantage of the exclusive 30 % discount, please use the registration link: https://pe-insights.com/private-equity-conferences/poland/register/ and use the code cvcacz30 to get your discount.

Limited Partners are invited to attend the conference for free. To get tickets, reach out to sebastian@pe-insights.com.

For any inquiries, contact the organizer at sebastian@pe-insights.com.

Kind regards,

Katerina

ESPIRA Invests in Czech Premier Clinic

ESPIRA Investments (ESPIRA), a CEE focused private equity investor, is pleased to announce the acquisition of a majority shareholding in Premier Clinic, a rapidly growing provider of aesthetic medicine in the Czech Republic. ESPIRA‘s investment has been made in partnership with Premier Clinic’s founder to strengthen and expand the company’s successful concept of high-quality care.

Premier Clinic offers comprehensive treatments in plastic and aesthetic surgery, corrective and laser dermatology and preventive medicine, treating Czech and international clients. In just a few years, Premier Clinic has become one of the top Czech clinics in its field with annual revenues of over EUR 4 million. The company’s management team is focused on growing the company in a sustainable and client-focused manner while delivering premium care and innovative treatments with an unwavering emphasis on safety. Furthermore, by regularly upgrading technology and equipment, clients are able to achieve better outcomes with shorter recovery times.

The Premier Clinic medical team is headed by the esteemed plastic surgeon, Dr. Lucie Zárubová. Thanks to her and the cohesive and respected medical team, Premier Clinic is able to attract and develop young and talented plastic surgeons and specialists.

“I am pleased to welcome ESPIRA as our new partner and I look forward to embarking on the next chapter of sustainable development while leveraging ESPIRA’s experience, broad network and strong financial expertise. We see expansion opportunities in the market and ESPIRA can support us realizing such new strategic initiatives,” said Martin Frank, CEO and Founder of Premier Clinic.

“The ESPIRA team is excited to support Premier Clinic’s successful strategy and to contribute to the further acceleration of its expansion by increasing capacity to address growing market demand, broadening its treatment offering and strengthening operational excellence. Premier Clinic has proved to be a resilient and agile company which grew even during the COVID-19 pandemic, and this is very encouraging,” said Emília Mamajová, Founding Partner of ESPIRA Investments.

ESPIRA was advised on the transaction by a legal team of Konečná & Zacha. The terms of the transaction were not disclosed.

MidEuropa-backed intive completes three bolt-ons

MidEuropa is pleased to announce that its portfolio company intive has completed three acquisitions to expand its global footprint and accelerate its scale-up in a fast growing and consolidating market.

The digital design and engineering services specialist operates an outsourced digital product development model which combines local onshore presence with nearshoring delivery capability in Central and Eastern Europe (CEE) and Latin America, in order to tap into a deep and high quality pool of IT talent. intive’s 2,800+ digital natives serve blue-chip clients including Ericsson, Audi, BMW, Vorwerk, BASF, Viacom, Discovery and Tandem.

intive’s recent acquisitions include:

  • US-based Spark Digital, a digital consulting, design, and development services provider, which significantly expands intive’s US presence as well as Media sector domain expertise. Spark Digital serves multinational enterprise clients with US onshore presence combined with nearshore delivery in Argentina and across greater Latin America (December 2021)

 

  • US-based SimTLiX, a digital transformation partner for some of the biggest Fortune 500 companies, which further boosts intive’s regional presence in the Americas and strengthens its domain expertise and value offering for customers in FinTech, Telecom, Healthcare and Retail sectors (November 2021)

 

  • Ireland-based Ammeon, a digital transformation and solutions partner, which extends intive’s regional presence in the UK & Ireland and its capability for customers in the Telecommunications sector, as well as the cloud domain and DevOps practices (May 2021)

MidEuropa acquired intive in February 2019, following early identification and approach to management and shareholders. Under MidEuropa’s stewardship, intive has expanded its delivery and design studios across existing and new geographies and more than doubled its workforce. intive is headquartered in Munich, with broad revenue and delivery coverage across Europe and the Americas.

Gurdeep Grewal, Chief Executive Officer of intive, said, “These acquisitions are helping us to achieve our global ambitions more quickly. MidEuropa’s support in helping to identify and approach businesses is invaluable, helping make a time-consuming and complex undertaking more straightforward. Their experience gives us confidence and strength in processes.”

Kerim Turkmen, Partner at MidEuropa, said, “The phenomenal growth intive is achieving is down to the impressive ambition of the team as well as the exciting global opportunity for their offering. We are delighted to support strategic priorities and devote capital and M&A resources to enable the team to accelerate growth and achieve international scale.”

Enterprise Investors to back the expansion of Ekoenergetyka-Polska

Polish Enterprise Fund VIII, a private equity fund managed by Enterprise Investors (EI), is to acquire a significant minority stake in Ekoenergetyka-Polska (Ekoenergetyka), a high-technology company focused on power charging solutions for electromobility.

  • The fund will invest over EUR 45 million in Ekoenergetyka-Polska and other projects related to e-mobility;
  • The transaction is conditional upon obtaining antimonopoly approval.

Ekoenergetyka is a Polish technology company offering unique solutions for the global market. Its main activity is the design and production of charging infrastructure for electric vehicles used in public and commercial transport, as well as private cars. The electromobility sector has grown rapidly in recent years, propelled by technological developments and more environmentally conscious customer choices. A stable, widely available and, above all, technologically advanced charging infrastructure is needed to keep up this growth momentum and meet the market’s present and future requirements. Ekoenergetyka is one of just a few players in the world offering such solutions.

Established by Mr. Bartosz Kubik and Mr. Maciej Wojeński in 2009, Ekoenergetyka grew out of an academic research project. Today, the company is a leading provider of advanced high-power charging solutions and has the potential to go global. Its products and services have been implemented in the largest European cities, including in Barcelona, Berlin, Hamburg, Munich, Paris and Warsaw. Thanks to its continually expanding R&D capabilities, superior research facilities and first-class production equipment, Ekoenergetyka is the technological leader in the field and successfully competes with international peers. Product development – from R&D through design and construction to sales and marketing – is carried out in-house. Ekoenergetyka also offers a broad range of maintenance and after-sales services that include 24/7 monitoring of charging stations and remote customer support in Polish, English and German. The company is led by a young management team with the right mix of vision, expertise and motivation to execute their ambitious expansion plan.

“We strongly believe in the electromobility sector’s dynamic growth and are very impressed by Ekoenergetyka’s innovation and technological sophistication as well as by how the company is commercializing its solutions,” said EI partner Sebastian Król, who is in charge of the deal. “The company’s unique experience and flexibility as well as the high quality of its products are appreciated by the most demanding customers in Poland and abroad. Ekoenergetyka’s solutions have been selected and implemented by the largest public transport operators in Poland and Europe, as well as by the major charging and fuel distribution networks. Thus the company is helping shape the development of this extremely fast-growing young market. This is an advantage we plan to use to reinforce Ekoenergetyka’s leading position,” he added.

“We decided to team up with Enterprise Investors to benefit from their experience in developing young entrepreneurial companies that are in a rapid growth phase. Ekoenergetyka is planning swift expansion, primarily in foreign markets. For this next step in our company’s development we sought a strong financial partner that would support us with both capital and experience. Now we can focus on becoming the number one player in the market,” said Bartosz Kubik, Ekoenergetyka’s co-founder.

“With Enterprise Investors’ support we intend to continue growing dynamically and developing our technological, production and organizational potential even faster, to build the best solutions for the zero-emissions transport of the future. Customer satisfaction at every stage is our priority, so I am pleased we have a partner with whom we will achieve our most ambitious goals in terms of production, service and maintaining our systems at peak efficiency,” added Maciej Wojeński, co-founder of Ekoenergetyka.

Enterprise Investors was supported on the legal side by DLA Piper Giziński, Kycia sp. j.; Ekoenergetyka-Polska and its founders were represented by the law firm Rubicon Kancelaria Radców Prawnych i Adwokatów Barbara Łągiewka sp. k.