Market

Genesis Capital invests in PFX

Based in Prague, PFX is a trusted and innovative provider of creative solutions for various media platforms. With an international team of 160 experienced professionals and four modern offices, PFX is one of the leading companies offering visual effects, animation, advertising campaigns and post-production services. Genesis Private Equity Fund IV, the private equity fund of Genesis Capital, has partnered with the founders to acquire a significant stake in the company. Both parties are committed to pushing the boundaries of creativity and innovation in the dynamic world of media and entertainment, and to developing new opportunities for clients seeking quality creative solutions. The common goal is to create a leading player in Central and Eastern Europe via a combination of organic and M&A growth.

“The investment in PFX is the culmination of our efforts to date to find the ideal platform for GPEF IV to enter this dynamic industry. PFX has demonstrated its exceptional quality and sustainable organic growth in recent years. In addition, we have found highly experienced and passionate growth partners in the founders of the company who fit perfectly with Genesis Capital’s investment strategy. Together, we have agreed to accelerate the company’s growth through a capital injection that will support its continued growth both organically and through strategic acquisitions. The global and European scene is extremely active in this sector, and we are proud to be able to actively participate in this development,” comments Martin Viliš, Partner at Genesis Capital Equity.

Jiří Mika, CEO of PFX, said, “The partnership with GPEF IV represents a significant milestone in our journey. It will allow us to expand our production capacity, invest in cutting-edge technology and continue to deliver exceptional creative services to our clients. We look forward to the exciting opportunities that lie ahead.”

“We are excited to partner with PFX and combine the background of a strong financial group and our expertise with their creative capabilities. Together, we aim to accelerate growth and innovation in the media and entertainment industry in Central and Eastern Europe and deliver unrivalled creative solutions to clients. This investment underscores our commitment to support companies with high growth potential and to create value for our investors,” added Jiří Kolísko, Senior Investment Manager at Genesis Capital Equity.

Enterprise Investors will invest in Advanced Protection Systems

Enterprise Investors Fund IX is to invest in Advanced Protection Systems, the largest Polish independent manufacturer of state-of-the-art radars and comprehensive anti-drone systems. 

  • EIF IX will acquire a significant minority share in the company;
  • The value of this proprietary investment has not been disclosed.

Advanced Protection Systems (APS) is a pioneering technology company founded by Dr. Maciej Klemm, CEO of the company, and Dr. Radosław Piesiewicz, COO, after successful academic careers. Having commenced the project in 2015 with a focus on radar technology development and production together with dedicated software, over the years APS has become a fully fledged solution provider catering to the growing demand for drone detection systems. The company’s proprietary radar technology offers unparalleled advantages over its competitors: it allows for faster high-precision detection and classification of multiple low, slow, and small (LSS) flying objects at lower altitudes.

The key to APS’s remarkable growth over the past years lies in its ability to provide a state-of-the-art radar system, complemented by intuitive and customizable software. The company’s hardware based on a modular architecture adds to its adaptability and suitability for both commercial and military customers.

“APS has garnered a strong track record, building on past successes and unique features of its solutions. We believe that in the years to come the company is poised to execute a very ambitious international expansion strategy,” said Michał Kędzia, a partner at Enterprise Investors who is responsible for the investment, adding “APS is run by very entrepreneurial founders who are responsible for its rapid growth to date. We do look forward to partnering with them. I am convinced that EI’s vast experience in optimizing corporate structure, conceptualizing and implementing most favorable financing, as well as recruiting top executive talent will result in very fruitful” and lucrative collaboration”.

“With the support of Enterprise Investors, we plan to sustain dynamic growth and accelerate the development of our technological, manufacturing, and organizational capabilities. At the core of our business activity lies product quality and customer satisfaction, which are our top priorities. We are happy to have found a partner that shares our vision, supports our goals and believes in our potential,” said Dr. Maciej Klemm, co-founder and CEO of APS.

Invest Europe opens its ESG Reporting Guidelines

  • Invest Europe makes publicly available its ESG Reporting Guidelines and revised template
  • European Investment Fund, AP2, France Invest endorse guidance

Invest Europe, the association representing Europe’s private equity, venture capital and infrastructure sectors, as well as their investors, is making its ESG Reporting Guidelines available to the entire private equity and venture capital community – previously only available to members – giving all firms best practice guidelines for reporting ESG aspects and metrics, policies and practices, enabling long-term investors to access sustainability information on their investments.

  • Invest Europe’s ESG Reporting Guidelines comprise a revised template for reporting to limited partners, including a list of recommended ESG metrics in line with regulatory requirements, voluntary initiatives, and investors’ needs. The Guidelines include direction for firms on integrating ESG into reporting processes throughout the investment lifecycle, and information on developing an ESG policy and assessing materiality. They also contain an extensive mapping of the pan-European regulatory environment, as well as existing standards and frameworks.
  • The Guidelines have already received broad industry recognition, with endorsement by the EIF, AP2 and France Invest. A range of general partners have already started using the template as their preferred format for sustainability reporting.

Invest Europe created the ESG Reporting Guidelines in 2022 with the support of more than 50 industry and ESG experts from Europe and beyond, initially making the template and guidance available to Invest Europe members to gather experiences and feedback. The aim of extending the Guidelines and template to the entire industry is to strengthen and accelerate momentum towards codification and harmonisation of ESG reporting, making the process easier for GPs, and the data more comparable and scalable for LPs.

The broad availability of the industry-leading Guidelines comes as the climate crisis reaches unprecedented levels, leaving no sector of activity unaffected and increasing pressure on businesses to step up efforts to tackle carbon emissions. Other topics, such as the participation of women in key roles and diversity in the workforce, are also generating attention from long-term investors and the public at large, driving greater action by private equity and venture capital firms.

Eric de Montgolfier, CEO of Invest Europe, commented:

  • “ESG and the climate crisis are among the biggest and most complex issues facing the industry today. Our ESG Reporting Guidelines provide much-needed clarity and practical guidance on incorporating and reporting on essential ESG topics. By extending availability of the Guidelines, we aim to increase harmonisation across the industry and create a new benchmark for ESG reporting, helping the industry to participate fully in the drive to a more sustainable future.”

When reporting according to recommended metrics, fund managers can leverage Invest Europe’s logo to signal that reporting is in line with industry norms. The revised ESG reporting template also includes additional metrics for those firms that wish to go further in their reporting to satisfy voluntary standards, investor demands, or to expand ESG data coverage.

Leading institutions, investors, fund managers, national associations and ESG solutions providers have given their support to the new Guidelines, paving the way for widespread adoption across the industry.

Marjut Falkstedt, Chief Executive Officer, European Investment Fund, commented:

  • “Tracking the performance of our investments is important for us. At the EIF, we want to contribute to the overall efforts of generating understandable and comparable metrics, so that ESG considerations can be leveraged towards achieving the policy goals of a more sustainable and inclusive Europe. We’re pleased about Invest Europe’s initiative for this ESG reporting template, helping to pave the way for a harmonised approach across the European venture capital and private equity industry.”

Anders Strömblad, Head of Alternative Investments, Andra AP-fonden/AP2, added:

  • “This guidance and the reporting template constitute a big leap forward for the entire private equity industry. Consolidation and harmonisation of reporting on ESG will save time and resources and – more importantly – facilitate data-driven ESG decisions for both GPs and LPs. By also securing coherence with international initiatives, the Invest Europe guidance and template also forms the most solid steppingstone for global consistency in ESG reporting.”    

Alexis Dupont, Managing Director, France Invest, said:

  • “Embracing sustainable investment and addressing climate change informed France Invest’s national pioneering work on ESG reporting harmonisation. A common approach at the EU-level is required, with Invest Europe’s ESG Reporting Guidelines now setting a new global ‘gold standard’ for ESG reporting to investors. France Invest is delighted to support the initiative, and promote these Invest Europe guidelines in France.”

The ESG Reporting Guidelines are part of an extensive library of ESG and sustainable investing resources created by Invest Europe to help managers and investors to understand and navigate this crucial topic. They include our Guide to ESG Due Diligence for Private Equity GPs and their Portfolio Companies, our Climate Change Guide, and the ESG KPI Report which tracks industry efforts across a range of ESG topics.

Enterprise Investors will invest in Goodspeed

Polish Enterprise Fund VIII, a private equity fund managed by Enterprise Investors, will invest in Goodspeed, Poland’s largest provider of highly specialized temperature-controlled logistics services for ready-to-eat meal producers.

  • PEF VIII will acquire a 49.8% share in the company;
  • Goodspeed’s founders, Sylwester Rypina and Paweł Rypina, will retain a majority stake and will work with EI on the company’s further dynamic development;
  • The value of the investment has not been disclosed;
  • The transaction requires antimonopoly approval.

Goodspeed was established in 2009, initially providing delivery services for a single meal box producer in one district of Warsaw. Today, it is the unchallenged leader in providing highly specialized cold chain logistics services for Poland’s ready-to-eat meal producers. The company serves more than 4,600 cities and towns across the entire country. It maintains the highest standard of service and an exceptionally effective delivery chain thanks to unrivaled know-how and logistics processes (with a proprietary IT platform) that are tailored to this market.

Size and nationwide reach allow Goodspeed to reap the benefits of scale. This, and the fact that a company wanting to deliver ready-to-eat meals must have a dedicated logistics chain, gives Goodspeed’s business model several competitive advantages and makes it to hard replicate. The financial results confirm the company’s market leadership: 2022 revenues reached PLN 80 million, while this year’s target is PLN 125 million.

“Goodspeed does what is hardest in logistics – last-mile temperature control,” said EI partner Michał Kędzia, who is responsible for this investment. “The company’s unique know-how enabling door-to-door delivery, and the growing role of direct sales in the food industry, create potential for expansion into new product categories. Since Goodspeed operates an extensive last-mile delivery network under temperature-controlled conditions, it can add a broad range of other services to its offer for end customers,” he added.

Sylwester Rypina, Goodspeed’s founder and CEO, summed up the development potential as follows: “Working with our new business partner, we plan to move the company’s dynamic development up another gear. We see we can expand our competencies by adding new solutions for our customers. Moreover, since we work with many ready-to-eat meal producers and serve a considerable part of this market, we believe we can use our lead position to offer those customers additional specialist services. For years we have been honing the very demanding logistics process for the catering industry. We allocate tens of thousands of meals every evening to production companies all over Poland and deliver them to consumers’ front doors within a few hours, maintaining full control over the cold chain logistics. We plan to develop these unique competencies in foreign markets with the support of our new partner. We also want to enter new industries and offer our existing customers other exciting and innovative solutions.”

Invitation to Aon’s IP Insurance Webinar for Czech&Slovakian Corporates

Innovation is all around us as businesses continue to develop new inventions, invest heavily in R&D, and register new Intellectual Property (IP) rights. However, the increase of such intangible assets lends itself to more things keeping decision makers up at night. The value has been created but is it being adequately protected? What are some of the key liabilities and exposures relating to intellectual property rights such as the event of a catastrophic IP infringement lawsuit?

I’m delighted to invite you to Aon’s IP Insurance Webinar for Czech & Slovakian Corporates on Wednesday, 17th May at 10:00 – 10:45 AM. Our IP experts will elaborate on how to protect your company balance sheet from IP risks and utilize insurance to enhance enterprise value. The webinar is designed to discuss the main IP insuring clauses and will attempt to answer these questions to help you better understand the benefits and uniqueness of utilising IP insurance both to protect your bottom line and to enhance existing enterprise value. You will come away with a better knowledge of the IP insurance market and should feel more confident about building your own IP strategy.

I do hope you can join us and please register with the link below:

Register here for our IP Insurance Webinar on 17 May

If you require any further information, please contact Monika Petržílková (monika.petrzilkova@aon.cz)

 

Enterprise Investors sells its stake in Unilink

Polish Enterprise Fund VIII, a private equity fund managed by Enterprise Investors (EI), exits Unilink, a leading insurance distribution platform in the CEE region.  Unilink will become part of Acrisure, a fintech that operates a top-ten global insurance broker. As a result of the transaction, PEF VIII will sell all of its shares in Unilink. Unilink’s management team will remain with the business.

  • The value of the transaction remains confidential;
  • The deal is conditional upon obtaining regulatory approvals.

Enterprise Investors invested in Unilink in 2018, making a capital increase to support an extensive M&A program and completing a partial buyout in return for a 38.4% stake in the business. At the time, the company was a leader in the local Polish market and was looking to strengthen its position as well as build up presence in neighboring countries. Today, Unilink is the largest insurance distribution platform in the CEE region. It has boosted its standing domestically and has also gained a strong foothold in Bulgaria, Czechia, Moldova, Romania and Slovakia. Growth has been both organic and via acquisitions, with over 60 add-ons bought since EI’s investment. During this time Unilink has not only increased its level of professionalization and digitalization but has also expanded the value chain by building two managing general agents (MGAs) in Poland and Romania that provide comprehensive services to insurance carriers. The growth of Unilink’s gross written premium by around 400% in four years is just one measure of its strong market position.

“Supporting a company’s growth is about investing in its future, which also means believing in its potential, supporting the management team and founders and being part of its journey to success,” said Enterprise Investors managing partner Dariusz Prończuk, who is responsible for this investment. “Unilink is the leading market consolidator in its market in Poland and other CEE countries. It is also one of just a few companies that have set up an MGA program in the CEE region and have full insurance capabilities. This is a good illustration of how at EI we not only support companies in their growth but also identify unique opportunities that can bring added value and contribute to their long-term success,” he concluded.

Igor Rusinowski, CEO of Unilink, commented: “Our five years with EI are a win-win. We have transformed Unilink from insurance distribution market leader in Poland to the largest player in CEE, spearheading the segment in six countries and operating through all distribution channels. With EI’s support we have achieved remarkable growth and built a solid position for the future. We believe the Acrisure partnership will help us become part of the largest insurance distribution platform in Europe, which is our next goal and long-term ambition. We share the same values and business DNA, with a very strong focus on entrepreneurship, M&As and delivering excellence. Our team are extremely excited to become Acrisure shareholders and to continue our expansion as part of this global player while leveraging its capabilities and technology in our markets.”

Anwim appoints BNP Paribas to explore strategic options

Anwim was founded in 1992 and initially it dealt solely with fuel wholesale. In 2009 the company launched retail operations and created an independent nationwide chain of petrol stations. Polish Enterprise Fund VIII, a private equity fund managed by Enterprise Investors, acquired a significant minority stake in Anwim in 2018. At the time the company had just over 180 fuel stations and EUR 730 million in annual revenues. Two years later – in 2020 – the fund increased its stake to majority position. Today Anwim, which operates over 400 service stations, is jointly owned by PEF VIII and minority shareholders, among whom are the company founders. Revenues last year approached EUR 2.8 billion.

MOYA is the largest independent chain of filling stations and the network is growing rapidly. MOYA stations are present in all Poland’s voivodeships, with outlets along the main transit routes and local roads as well as in towns and cities. In addition to fuel sales, the chain’s broad offer includes well-stocked convenience stores, Caffe MOYA outlets with food on the go, as well as other services. MOYA has also been growing quickly in the fleet segment, which was boosted by the company’s expansion into the international fleet card market in 2022 when it acquired The Fuel Company, TFC fleet card’s Dutch operator.

Enterprise Investors backs the dynamic growth of Renters.pl

Polish Enterprise Fund VIII, a private equity fund managed by Enterprise Investors, is poised to back Renters.pl, the second largest short-term rental manager in Poland.

  • PEF VIII will invest up to EUR 19 million in the company’s growth;
  • The fund will acquire up to 80% of shares in pl through this investment;
  • The transaction is conditional upon obtaining antimonopoly approval.

Renters.pl was founded in 2018 by two couples, Marta and Kamil Krzyżanowski and Aniela and Sebastian Hejnowski. The company started off as an operator of 15 holiday apartments in Świnoujście, north-west Poland. Within just a few years, it has become one of the largest players in this market and the country’s fastest-growing short-term rental property manager. In 2019 Renters.pl acquired Little Home, a company owned by Wojciech Maniecki, and it now operates over 2,000 rental apartments. Enterprise Investors will buy both the Hejnowskis’ and Wojciech Maniecki’s stakes, as well as shares owned by bValue fund, while retaining the current CEO Kamil Krzyżanowski at the helm. The funds raised in the transaction will be deployed for further growth and acquisitions.

Renters.pl operates in the very attractive and fast-growing short-term rental management market. It has a highly scalable and cash-generative business model that benefits from the organization’s growing size. The company’s customers are private and institutional property owners seeking comprehensive short-term property management and high rates of return on their investment. In addition to marketing and demand generation, Renters.pl offers homeowners dynamic pricing, management of both bookings and guests, cleaning, maintenance, interior design and professional photo services. The company employs over 110 people and in 2022 generated gross bookings value of nearly EUR 27 million.

“Having recorded growth during the pandemic, Renters.pl has demonstrated it can successfully scale up its property portfolio even under the most challenging conditions. The Polish market is still very fragmented, so for businesses operating in this segment to remain competitive they have to employ increasingly complex technology and have the appropriate resources as well as funding to maintain high-quality services. This creates natural entry barriers for newcomers and a good environment for consolidation,” said Enterprise Investors partner Dariusz Prończuk, who is in charge of this investment. “Renters.pl is an excellent platform for consolidating this sector both in Poland and across the region,” he added.

”The management team has the market expertise and drive needed to continue building Renters.pl’s property portfolio and to pursue consolidation projects. We are proud that the Enterprise Investors team recognized our experience and further growth potential. Our plan is to become the largest short-term rental manager in Poland and, when the time is right, we may even look for expansion opportunities further afield,” said Kamil Krzyżanowski, co-founder and CEO of Renters.pl.

Enterprise Investors backs BISAR

Polish Enterprise Fund VIII, a private equity fund managed by Enterprise Investors, will acquire a 40% stake in BISAR, a fast-growing process outsourcing company operating in Poland and expanding to other Central European countries.

  • The fund will invest up to EUR 27 million in the company’s further growth and foreign expansion;
  • The transaction is conditional upon obtaining antimonopoly approval.

BISAR specializes in process outsourcing services. It was founded in 2015 and very quickly expanded by taking on large corporate accounts. Over time, the company built an impressive portfolio of reputable clients from various industries including retail, logistics and food processing. BISAR’s dynamic growth was spurred by macroeconomic trends – very low unemployment rates, a shortage of workers in almost all sectors of the economy and an aging population. As these trends are pan-European, BISAR has already started geographic expansion: the company entered Romania earlier this year and plans to move into new geographies in the CEE region.

BISAR is committed to ensuring its employees receive professional training, which greatly increases the quality of services provided by the company. Its operational excellence, ability to quickly adjust to customer needs and high standards are greatly valued by the company’s business partners. BISAR will reach EUR 70 million in revenues in 2022 and plans to grow dynamically in the future on the back of prevailing macroeconomic trends.

“BISAR provides essential services that respond to the increasing workforce shortages caused by demographic changes. Unemployment levels are low and are likely to stay that way even during the economic downturn. I am convinced that together with the founders we will be able to mitigate the growing imbalance on the labor market in Poland and the region,” said Sebastian Król, a partner at Enterprise Investors who is responsible for this transaction.

Commenting on the deal, BISAR’s management board member Robert Abramek said “We strongly believe that together with our partners at Enterprise Investors we can take BISAR to the next level. This new partnership will accelerate implementation of technological solutions that we have already planned. Given the company’s strategic positioning and outstanding prospects, we plan to expand not only our existing accounts but also new ones outside of Poland.”

Enterprise Investors exits Noriel

Polish Enterprise Fund VII, a private equity fund managed by Enterprise Investors (EI), has sold Noriel, Romania’s number one toys, games and children products retailer. The company has been acquired by Sunman Group, a Turkish market leader in toy retail, distribution and manufacturing that operates under the Sunman and Toyzz Shop brands. The value of the transaction will remain confidential.

Enterprise Investors acquired Noriel in 2016 for an undisclosed amount. At the time, it was a family-owned company backed by a financial investor. It operated a network of 47 shops. As part of the deal, EI provided Noriel with EUR 2 million in funding to boost its growth.

Today, the company is a robust omnichannel business with 88 modern stores located all across Romania. Noriel is a top brand on the Romanian toy market – a one-stop-shop for kids and their parents. The company offers the broadest assortment of toys, games and other baby products in the country. Its fast-growing, scalable e-store with an even broader product offering and highly efficient fulfillment function is a perfect platform for entering new markets, as evidenced by the company’s recent expansion to Bulgaria. Noriel’s modern CRM and loyalty systems put it at an advantage over local competitors. The company’s solid sales growth confirms its strong position: in 2022 Noriel is expected reach revenues of RON 312 million, its highest result to date.

“We are proud to be part of Noriel’s journey toward market-leading retail and e-commerce formats that provide the best shopping experience. Today, this is the only player in Romania to offer a true omnichannel service that maximizes online and offline synergies,” said Dariusz Pietrzak, a vice president at Enterprise Investors, who is responsible for the investment. “A shift in preferences toward innovative, entertaining and educational products will further benefit Noriel thanks to the company’s strong product development and sourcing capabilities,” he added.