General partner Versute Investments s.r.o. (“Versute”) and Sub-fund BHS Private Equity Fund (“BHS PE Fund”) prepared in cooperation with the owners of Babičkin Dvor a.s. (“Babičkin Dvor”) project for the reconstruction and operation of manufactory of feed mixtures for livestock under a separate company Babičkin Dvor Agro Servis a.s. (“BDAS”).
Babičkin Dvor owns and operates nine poultry farms in the region of Velký Krtíš and is the second largest producer of eggs in Slovakia. The company is currently making investments in order to increase capacity and transfer the form of poultry farming from cages to free ranges. Simultaneously, the management of Babičkin Dvor identified the opportunity to buy, at favourable price, assets which historically served as a manufactory of feed mixtures for livestock. And as Babičkin Dvor and its production volume are growing, it was advantageous for them to acquire its own production of feed mixtures. However, due to the aforementioned investment project, Babičkin Dvor did not havesufficient resources and capacity to implement this plan. Therefore, and especially due to the fact that the possibility of purchasing the above-mentioned assets was limited in time and the subsequent construction of similar manufactory on “green field” would be much more expensive, Babičkin Dvor and Versute agreed on a joint plan to purchase, reconstruct and operate the manufactory of feed mixtures under the stand-alone company BDAS.
Hence, BDAS is a newly created entity, within which an investment project is being realized – the purchase of the assets, their repairing and production of feed mixtures. Major owner of BDAS is BHS PE Fund, whose capital is used for the aforementioned purchase of the assets and the start of production. Babičkin Dvor will then be purchasing approximately half of the production of BDAS every year and the other half will be sold on the market within the region.
Babičkin Dvor Agro Servis a.s. is currently the fourth active portfolio investment of BHS PE Fund, which expands its already high-quality and resilient portfolio with an investment that is not only resilient to economic fluctuations, but also meets sustainability criteria.
Sub-fund BHS Private Equity Fund, which is a sub-fund of BHS Fund II. – Private Equity, investment fund with a variable capital, a.s., focuses on investments in small and medium size enterprises in the Czech Republic and Slovakia. The Fund generated a record-breaking net return of 23.11 % in 2020.