ARGUS Capital Group Limited

ARGUS was established in 1998 and has eight investment professionals based in offices in London, Budapest, Prague, Warsaw and Sfântu Gheorghe, and more local offices may be established in future. In countries where ARGUS does not have a local presence, we have built relationships with leading local financial institutions and market participants for sourcing and executing transactions.

ARGUS was one of the first private equity firms to establish a network of offices in the countries of Central and Eastern Europe (the "Region"). We consider our local presence to be essential to our strategy of forming close partnerships with investee companies and building them into industry leaders.

ARGUS is supported by leading institutional investors and family offices from Europe, North America, the Middle East, and Japan. Many leading banks active in the Region are investors in ARGUS, giving ARGUS ready access to providers of debt financing for its transactions.

ARGUS is independent and jointly owned by its partners. All investment decisions are made internally by the firm's investment professionals, ensuring a flexible and timely approval process.

With total commitments in excess of €400 million in its two funds, ARGUS has invested in fiftheen companies in the Region since 1999. Our investments include many leading and well-known companies described under Portfolio Companies. 

FiberNet is the largest independent cable television ("CATV") company in Hungary. ARGUS, together with a local entrepreneur, established the company in 1999 to lead the consolidation of the Hungarian CATV market which was very fragmented at the time. Over the following years, FiberNet acquired a diverse group of smaller networks, which were subsequently upgraded and integrated into a unified and efficiently managed operation with over 120,000 subscribers. ARGUS sold its controlling stake in the company to a financial investor in 2004.
Palace Cinemas (Central Europe) BV is the leading multiplex cinema exhibitor in the Czech Republic, Slovakia and Hungary, as measured by admissions and box office. Founded in 1999 together with two experienced media entrepreneurs, Palace has grown into the regional leader by developing its own high quality sites as well as through market consolidation, having made major acquisitions of its competitors in 2002, 2005 and 2006.
Svoboda Press a.s. is the largest commercial printing company in the Czech Republic. In early 2000, ARGUS acquired the company, which was then the number three player on the Czech market. Working closely with management, ARGUS restructured the company, focusing on core activities, investing in state-of-the-art technology, and expanding Svoboda's export capabilities. By 2006, when ARGUS sold the company to a pan-Regional printer, Svoboda was the leading commercial printer in the Czech Republic and one of the major players in the Region.
eTel is a regional alternative telecommunications company with operations in Austria, the Czech Republic, Hungary, Poland and Slovakia offering voice and data services to corporate and residential customers. ARGUS, together with other financial investors, provided expansion capital to eTel in 2000. As the largest shareholder in eTel, ARGUS was instrumental in supporting the company throughout the telecoms crisis in the early 2000s. As a result, eTel has successfully realized its ambition to become a leading player in the Region and the company has increased its revenues from EUR 6 million in 2000 to EUR 115 million in 2006. eTel was sold to Telecom Austria in early 2007.
ASTER is the leading cable television company in Warsaw, providing internet and cable television services to residential customers. In 2003, ARGUS was able to act quickly to organize a consortium that put together a debt and equity package in excess of US$ 100 million to complete the largest leveraged buy-out in Poland up to that time. ARGUS exited the investment in 2005.
Hanex is a leading Polish manufacturer of PET performs and bottles for many well known drinks manufacturers in Poland and adjacent countries. The company's competitive advantage lies in its patented designs, which the company continually develops and which offer its clients solutions with superior parameters to those offered by mainline manufacturers that produce commodity-like products. ARGUS acquired a super-majority stake in the company from a private seller in 2006.
RIO Media was established by ARGUS in 2008 to consolidate the fragmented cable television ("CATV") market in the Czech Republic. The company has already made a total of six acquisitions, becoming the second largest CATV operator in the country. RIO Media provides video, internet and voice services to more than 100,000 subscribers.
Memorial is a leading private healthcare provider in the fast growing Turkish market offering complicated services including organ transplantations, cardiovascular surgery, cardiology, IVF, etc. The company operates four hospitals and two outpatient polyclinics located in Istanbul and Antalya. Memorial’s goal is to expand to other regions of Turkey by opening new hospitals and taking over the management of existing hospitals. In 2010, ARGUS acquired a 20% equity stake in Memorial from its owners, the Aydin family.
Calucem previously known as Heidelberger Calcium Aluminates, is one of the leading worldwide suppliers of calcium aluminate cement, supplying high quality and specialty cement to both the refractory and building chemistry industries. Calucem products include low and medium grade alumina cement and clinker. Calucem Group companies include Calucem d.o.o., a production facility based in Croatia, as well sales offices in Germany, the United States and Singapore. ARGUS, in partnership with the management team of Calucem, acquired 100% of the company in September 2010.
Izzi group is the second largest cable television company in Latvia, providing full range of telecommunications services (“quadruple play”) to residential customers and businesses, located in and around Riga, as well as other large towns in the country. In 2008 ARGUS together with a group of other investors acquired the company in the first LBO of that size in Latvia. Since then, ARGUS is a majority owner of the Izzi group and actively supports the company’s development.

ARGUS Capital Partners II

ARGUS' second fund, ARGUS II, is a closed-ended Jersey based limited partnership which makes private equity investments in the Region. The Fund has commitments of EUR 263 million. ARGUS' first fund, which had commitments in excess of USD 170 million, is fully invested.

ARGUS II invests in the following Central and Eastern European countries: Albania, Bosnia & Herzegovina, Bulgaria, Croatia, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, FYR Macedonia, Montenegro, Poland, Romania, Serbia, Slovakia, Slovenia, and Turkey.

The private equity provided by the Fund has been utilized:

• In buy-outs of non-core businesses of conglomerates or outright sales by owners in partnership with existing or new management teams working towards unlocking value and helping the company achieve its full potential;
• As financing for companies wishing to expand or restructure their businesses and simultaneously wanting to maintain strategic and financial flexibility, in partnership with the management and owners of the investee company;
• To assist companies that have not yet reached the critical mass required to float on the stock market or that wish to raise money when the public market conditions are not favourable, in preparation for a public market listing in partnership with management and other shareholders.
• In "roll-up" plays in fragmented industries that lend themselves to consolidation, in partnership with the existing management team and shareholders of a platform company in such industries or buy-in management teams with experience in such industries.

ARGUS has a demonstrated ability to complete complex transactions, such as buy-outs, mergers, and acquisitions, in a timely and professional manner. Moreover, we have deep experience in dealing with financial institutions to secure debt financing for leveraged deals and our investee companies. As several of the leading banks in the Region are investors in the Fund, ARGUS has ready access to multiple sources of debt financing.

First and foremost, we seek companies that have high quality management teams that possess the requisite managerial skills and an entrepreneurial approach. Our investee companies will have products or services with distinct competitive advantage and strong growth prospects.

ARGUS is a generalist fund with no specific sector preference, typically investing €10 to €40 million into equity or equity related securities. We generally have controlling shareholding positions in investee companies, including Board representation, however the Fund does accept a minority position, providing sufficient minority protection rights can be put in place.

Our investments have wide ranging holding periods, with 3 to 5 years being typical.

ARGUS has a streamlined investment process, which enables fast, effective valuation and execution of investment opportunities. Investee companies can therefore maintain focus on their business goals throughout the process with minimal disruption.

Our investment professionals source investment opportunities either via direct contact with potential investee companies or through professional intermediaries or other funds.

Due diligence encompasses detailed discussions with management of potential investee companies and a review of the company's business and financial performance. We often involve industry specialists, who work hand in hand with potential investee companies to define strategic directions and finalise business plans, including financial projections.

All investment decisions are made internally by the firm's investment professionals, thereby ensuring a flexible and timely approval process. 

Partnership at Work

Upon becoming a shareholder in a company, ARGUS plays a pro-active, value-adding and constructive role in partnership with the management of investee companies. This can involve the employment of various profit-enhancing measures such as product expansion, geographical expansion, vertical or horizontal integration, and improvement of financial controls.

We do not get involved in day-to-day operational management but participate in making strategic decisions, such as capital restructuring, major acquisitions, mergers or divestitures, and sale or listing of the company, via our Board representation. If required, ARGUS can introduce industry specialists with extensive experience who can co-operate with the management to exploit the full potential of the company.

In many of its investments, ARGUS has demonstrated its ability to add value through follow-on mergers and acquisitions to build leading companies in the Region. This experience with industry consolidation and roll-up strategies, executed in partnership with management and fellow shareholders of our investee companies, differentiates ARGUS from many of its peers.

 Exit

During the investment period, ARGUS together with management/other shareholders or entrepreneur, evaluates possible exit routes and guides the investee company towards an exit with a view to maximizing shareholder value and ensuring the further development of the investee company. Exit can take place either via public listing or sale to a strategic or financial investor.

ARGUS' policy is to ensure that the management teams/entrepreneurs have a meaningful stake in the business which can be further enhanced by the returns achieved. 

LONDON

• Ali Artunkal
  Ali is based in London. He joined ARGUS in November 1997. Ali was formerly a Director of Chase Investment Bank with responsibility for transaction execution at Chase Fund Management Polska. Before joining ARGUS, Ali was a Director of Chase Capital Europe in the area of private equity/mezzanine investments in Europe.

CZECH REPUBLIC

• George Collins
  George is based in Prague. He joined ARGUS in January 1998. Based in the Region since 1992, George previously worked with Credit Suisse First Boston, MC Securities, and Patria Finance, a leading Czech investment bank.
  
  
  
• Daniel Zach
  Daniel is based in Prague. He joined ARGUS in June 2002. Before joining ARGUS, Daniel worked for Odien Group, where he was involved in restructurings, private investments, and advisory work.
  
  
  

HUNGARY

• László Grubits, CFA
  László is based in Budapest. He joined ARGUS in March 1998. László was formerly with MC Securities in London and Creditanstalt Securities in Budapest, working on corporate finance and capital markets transactions in Hungary and Croatia.
  
  

ROMANIA

• Noémi Nagy
  Noémi is based in Sfântu Gheorghe. She joined ARGUS in November 2006. Prior to joining ARGUS, Noémi gained experience in finance with various projects in both Hungary and Romania.
  
  
  

POLAND

• Paweł Scott
  Paweł is based in Warsaw. He joined ARGUS in September 1998. Before joining ARGUS, Paweł was Portfolio Director at Chase Fund Management Polska with nine years of previous corporate finance and private equity experience in Poland.
  
  
• Emil Daciuk
  Emil is based in Warsaw. He joined ARGUS in September 1998. Emil was formerly a Consultant with Chase Fund Management Polska and Management Accounting Consulting.
  
  
  
• Andrzej Fudali
  Andrzej is based in Warsaw. He joined ARGUS in August 2006. Before joining ARGUS, Andrzej worked in the transaction advisory group of Ernst & Young in Warsaw.

 Source: http://www.arguscapitalgroup.com/en/index.html