Enterprise Investors

• Experienced professionals
  Enterprise Investors is the oldest and one of the largest firms managing private equity and venture capital funds in Poland and Central and Eastern Europe. The firm was established by John P. Birkelund and Robert G. Faris, who pioneered the private equity and venture capital industry in the US and are recognized authorities in the field. Building on their success in the US and Western Europe, these private equity experts introduced the best industry standards to the CEE market and became mentors to the EI investment team.
  Since 1990 we have managed the capital of major European and American financial institutions. Our objective is to invest the money entrusted to us in companies that demonstrate high growth potential, and then to work with the entrepreneurs and the managers to increase the value of those companies. Our ultimate aim is to return capital to the investors at attractive multiples.
  Since inception we have raised eight funds with combined capital of €2 billion. In this time we have invested €1.5 billion in close to 130 companies, and exited more than 90 investments with gross proceeds of €1.7 billion.
  Our experience and network of relationships in local markets count among our foremost strengths. These assets have earned us the respect of leading foreign investors, who regularly entrust us with ever larger funds.
  Enterprise Investors is an independent, private firm jointly owned by its partners. Our funds invest in companies from Poland and other countries of Central and Eastern Europe, across a wide range of industries. We are able to respond to the challenges of the local economies, regardless of which country we operate in.
  
  

  • Global players
    In keeping with global economic trends, we often take on major capital-intensive projects that span many countries, forming consortia with other investors if the scale of the project demands it. Thanks to the creation of our venture fund we have an offer for all dynamically growing firms, no matter their size and location.
    
    
  • Innovators
    Our record as private equity pioneers is impressive – we were the first in Poland to introduce management options. We were also the first financial investor to exit an investment through an initial public offering (IPO) on the Warsaw Stock Exchange and one of the first in Central and Eastern Europe to use bank leverage.
    Having supported the development of businesses in the region with our innovative transactions for more then 20 years, we now focus on buyouts, management buyouts and buyins, pre-IPOs and expansion financing.
    Enterprise Investors has taken close to 30 companies public on the stock exchanges of Warsaw and New York – more than any other private equity firm in the region. We actively encourage buyout and buyin transactions, and sponsor the MBI & MBO Club for executives from Central and Eastern Europe interested in pursuing such deals.
    
    

    • Effective investors
      Companies need to continuously invest and increase their value, because no business can afford to stand still. One of the best routes to achieving this is by partnering with a private equity firm. At Enterprise Investors we manage funds effectively, achieving an average money multiple of almost three times cost on all exited investments.
      Our investments range from €5 million to €100 million or more. We are open to taking minority or majority positions, up to 100% of the firm.
      

    
    

    • High achievers
      Most businesses mature in step with the economy. At Enterprise Investors we have the capital, experience and investment expertise to help your company develop faster than both the economy and the competition. We share your aim of meeting the challenges of the global economy and reaping both financial and market rewards.
      Having pioneered private equity in Poland, we have built up unparalleled experience that our business partners justifiably view as a mark of guarantee. Our firm’s reputation has been confirmed by a number of prestigious awards, including Best Private Equity Firm in Central and Eastern Europe.
      

       
       

    
    
    

  Strategy
  

  We invest predominantly in medium-sized privately owned firms, but our venture capital fund provides equity to smaller firms, too. Our period of involvement is usually between three and seven years. After the acquisition we focus on the company's long-term growth, providing additional financing where necessary and systematically reinvesting profits.
  We play an active role in the development of our portfolio companies through supervisory board representation, without becoming involved in their day-to-day operations. Firms we work with can count on our full support when making key decisions regarding strategy, operational matters and financial planning. We assist them with recruitment for senior positions, to ensure management is of the highest caliber. We also help them with mergers and acquisitions, and prepare companies for public market entry.
  Our extensive network of relationships means we are able to provide introductions to the best legal advisors and accountants, as and when required. We also offer access to our more than 100 past and present portfolio companies and their customers.
  
  

  History

  • 1990 – Polish-American Enterprise Fund

    EI's investment activities began with the establishment of the $240 million Polish-American Enterprise Fund in 1990. PAEF was funded by the US government to support the Polish private sector through direct equity investments and loans, primarily to small and medium-sized Polish businesses.
    

  • 1992 – Polish Private Equity Funds I & II

    The initial success of PAEF led to the establishment of Polish Private Equity Funds I & II in 1992, with a $50 million investment by PAEF and an additional $101 million of capital provided by leading institutional investors from around the world. All of PPEF I & II’s capital was invested in Poland.
    

  • 1997 – Polish Enterprise Fund

    The next private fund – Polish Enterprise Fund – was established in 1997 with $164 million of capital. PEF helped build the market position of a large number of leading Polish companies and floated many of them on the Warsaw Stock Exchange.
    

  • 2000 – Polish Enterprise Fund IV

    In 2000 Enterprise Investors closed its fourth fund, Polish Enterprise Fund IV, with a total of $217 million committed by the largest and most influential financial institutions from the US and Western Europe. The fund's capital was invested in the development of private businesses in Poland and other countries of Central and Eastern Europe.
    

  • 2004 – Polish Enterprise Fund V

    In 2004 Enterprise Investors closed Polish Enterprise Fund V at €300 million. Polish Enterprise Fund V included investors that were new to the region as well as others with experience from EI's previous funds. PEF V was particularly well received thanks to Poland's accession to the EU. In addition to realizing expansion financing transactions a large part of the fund’s capital was set aside for buyouts.
    

  • 2006 – Polish Enterprise Fund VI

    In 2006 Enterprise Investors closed Polish Enterprise Fund VI with capital of €658 million. European LPs accounted for 65% of the fund and US LPs committed 35%. The fund was used to pursue buyout transactions, including management buyouts, as well as expansion financing.
    

  • 2008 – Enterprise Venture Fund I

    In 2008 Enterprise Investors closed its first venture capital fund, Enterprise Venture Fund I. The total capital of the fund was €100 million. EVF’s investments range from €1 million to €5 million per project. The fund finances the expansion of small and medium-sized enterprises operating in the technology sector as well as in traditional sectors in Poland and other Central and Eastern European countries.
    

  • 2012 – Polish Enterprise Fund VII

    In 2012 Enterprise Investors raised Polish Enterprise Fund VII, with capital committed by our long term LPs from Western Europe and the US. The fund's purpose is to pursue buyout transactions, including management buyouts, as well as expansion financing.
    

  
  

  
  

  EI Partners

  Enterprise Investors has a team of more than 30 managing partners, partners, vice presidents, investment directors and analysts. Overall strategy and development goals are set by the firm’s Board of Directors. EI’s partners form the core of the investment team.
  

  Profiles of EI Partners:

  • Robert Faris – Chairman of the Board of Directors
    
    
    He co-founded the firm in 1990. Mr. Faris has worked in venture capital and private equity for more than 40 years, and was previously president of Alan Patricof Associates (now Apax), one of the largest private equity firms in the US and Western Europe. In 2011, Mr. Faris was awarded the Commander's Cross with Star of the Order of Merit for his contribution to the development of the Polish economy.
    
    
    
    
  • Jacek Siwicki – President
    
    
    Mr. Siwicki manages the firm’s operations and is responsible for implementing its strategy across the whole CEE region. He concentrates on the specialty retail, appliances and home finishing sectors. At EI he has led 20 direct investments, including those in W.Kruk, LPP and Zelmer. Mr. Siwicki previously worked in the IT industry and in consulting, and in 1991 served as Poland’s deputy minister of privatization.
    
    Sklepy Komfort, Zelmer
    
    
  • Robert Manz – Managing Partner
    
    Mr. Manz is responsible for our investments in the cable TV, telecom, pharmaceutical and FMCG sectors, and for the firm's strategy in Hungary and Slovakia. He has led 15 direct investments at EI, among others in Orange Slovakia, Nay and PharmaSwiss. Mr. Manz was the founding president of PSIK, the Polish Private Equity Association, and served as its president for five years during the first decade of PSIK's activities. He is also chairman of the Central and Eastern Europe Task Force of the European Private Equity and Venture Capital Association. Before joining EI he worked in the mergers and acquisitions division of Dillon Read & Co. in New York.
    
    Nay
    
  • Dariusz Prończuk – Managing Partner
    
    Mr. Prończuk specializes in the financial services, IT and construction materials sectors, and is responsible for our operations in the Czech Republic. He has completed 20 investments at EI, including those in Lukas, Comp Rzeszów (now Asseco), Magellan, Kruk and Skarbiec. Prior to joining EI, Mr. Prończuk worked in consulting and was vice president of the investment bank Hejka Michna.
    
    AVG Technologies, Kofola, Kruk, Magellan, Macon,
    Netrisk.hu, Skarbiec Asset Management Holding
    
    
  • Michał Rusiecki – Managing Partner
    
    
    
    Mr. Rusiecki is responsible for investments in the food retail, FMCG, healthcare, renewable energy and cleantech sectors. He oversees the firm’s activities in Slovenia and Croatia. Mr. Rusiecki has completed 15 transactions, including those in Polish Energy Partners, Harper Hygienics, DGS, Dino, Wento and UOS. Before moving into private equity, Mr. Rusiecki worked at the Polish Ministry of Privatization and at the University of Warsaw.
    
    Dino, Harper Hygienics, Wento, UOS
    
  • Rafał Bator – Partner
    
    
    
    Mr. Bator leads the venture capital team. He specializes in technology investments and his most important projects to date include AVG Technologies and the restructuring of AB and Teta. Before joining EI, he worked for Prokom Software Systems and Optimus, two of Poland's leading IT companies, as well as for Price Waterhouse.
    
    AVG Technologies, Siveco
    
    
  • Stanisław Knaflewski – Partner
    
    
    
    Mr. Knaflewski specializes in the pharmaceutical, construction materials and telecom sectors and coordinates the firm’s activities in Bulgaria. He led our investments in Bulgarian Telecom, Nomi and Nordglass. Before joining EI, he worked for The Boston Consulting Group in Paris and Warsaw, where he led projects in strategic consultancy and company restructuring.
    
    Nordglass
    
    
  • Sebastian Król – Partner
    
    
    Mr. Król concentrates on the financial services, food retail and construction services sectors. His most important investments at EI include those in Magellan, Skarbiec, Profi and X-Trade Brokers. Before joining EI, Mr. Król worked for Arthur Andersen and Hachette Distribution Services. He holds an ACCA qualification.
    
    Magellan, Novaturas, Profi, Skarbiec, X-Trade Brokers
    
  • Jacek Woźniak – Partner
    
    
    Mr. Woźniak manages the firm's investments in the FMCG, food processing and furniture sectors. His most important investments at EI include those in Sfinks, Agros Nova and Kofola. Prior to joining EI, Jacek Woźniak was a consultant at the Warsaw office of Arthur Andersen and an investment director at Trinity Management, a fund management company in the Polish Mass Privatization Program.
    
    Gamet, Kofola, UOS
    
  • Cristian Nacu – Partner
    
    
    Cristian Nacu is the head of EI's representative office in Romania. Mr. Nacu's most important projects to date include our investments in Macon, Siveco and Profi. Previously, he worked for International Finance Corporation, the investment arm of the World Bank. He also worked for the Romanian government, managing one of the largest privatization portfolios and completing 25 privatizations. Cristian Nacu is president of South Eastern Europe's Private Equity Association (SEEPEA).
    
    Macon, Profi
    
    
    

    Investment targets

    Enterprise Investors is a tested partner when it comes to growing businesses. We cooperate effectively with both mature and smaller companies as we provide two distinct financing strategies – buyout and expansion capital.
    The companies we invest in most readily are well-developed, profitable businesses with good cash flows. They have a strong competitive position thanks to their geographical location, patents and cost-effectiveness. For us as investors, what matters is that a company can demonstrate recent above-average growth in value that is forecast to continue after the investment. We also look for firms that have the potential to improve their financial results through planned restructuring. Critical, too, are the skills and competence of the existing managers, or their plans for strengthening the team with outstanding individuals.
    We encourage you to partner with us.
    

     

     

     

     

    Our funds

    
    Enterprise Investors is a pioneer of the private equity industry in Poland and CEE. Over two decades we have raised seven private equity funds with a combined capital of €1.9 billion.
    The first three funds – the Polish-American Enterprise Fund, Polish Private Equity Funds I&II, the Polish Enterprise Fund – have been fully invested and realized, with substantial profits returned to investors in these funds.
    We have also fully invested the capital of the other three funds – Polish Enterprise Fund IV, Polish Enterprise Fund V and Polish Enterprise Fund VI – and have already exited many of the investments, achieving attractive returns.
    Enterprise Investors has now started to look for deals for our seventh fund, Polish Enterprise Fund VII. We invite you to partner with us.
    

     

     

    Polish Enterprise Fund VII

    Since 2012 EI has been investing the capital of Polish Enterprise Fund VII. This fund actively seeks mid-market buyout projects in attractive sectors in Central and Eastern Europe.
    Entrepreneurs decide to partner with our fund when selling part of their company, or when taking it to the next level of development. The fund is keen to work with individuals who want to run their company and retain a controlling stake but need capital to expand, to open new outlets, build factories abroad, or take over competitors. We are also interested in partnering with entrepreneurs who have been active for a long time and want to diversify their assets by selling a majority stake, while retaining involvement in their business at board level.
    In most cases PEF VII invests at least €30-€60 million in return for a majority stake or 100% of the company.
    

     

     

     

    Investments

    • 

      AVG Technologies

      Global provider of anti-virus software. Its programs currently protect more than 100 million computers worldwide. In 2005 our fund acquired 34% of the company's shares in a buyout transaction. Following a public offering on the New York Stock Exchange in 2012, we control 27% of AVG's capital.
      
    • 

      Center for Cancer Diagnostics and Therapy

      Radiotherapy clinic in Silesia, southern Poland. Our fund bought 100% of the business in 2012 from Voxel, a WSE-listed company, to finance its development.
      
    • 

      Dino

      Polish chain of supermarkets expanding dynamically in the western part of the country. In 2010 our fund acquired 49% of shares in Dino to support the rapid growth of the chain.
      
    • 

      Gamet

      Poland's largest manufacturer of decorative furniture accessories. In 2005 our fund acquired 100% of Gamet in an MBI.
      
    • 

      Harper Hygienics

      Polish manufacturer of skincare-related cotton products sold under the Cleanic brand. Our fund has been investing in the company since 2004 and now owns a 60% stake. Harper Hygienics has been listed on the Warsaw Stock Exchange since 2010.
      
    • 

      Kofola

      The company was formed through a merger of Kofola and Hoop, becoming one of the most significant producers of non-alcoholic beverages in Central and Eastern Europe. Kofola manufactures its products in factories located in Poland, the Czech Republic and Slovakia. Our fund acquired a stake in Kofola in a public tender offer on the WSE in 2008. We now control 43% of the company.
      
    • 

      Kruk

      Poland's number one receivables management company and the market leader in Romania. Our fund acquired a stake in the business in 2003 in a combined buyout and capital increase. In 2011 Kruk debuted on the Warsaw Stock Exchange. We control 25% of the company following the IPO.
      
    • 

      Macon

      Leading construction materials producer in Romania. Our funds bought out Macon in 2006. In 2008 we provided equity financing that enabled the company to acquire a majority stake in Simcor Group and thereby strengthen its leading market position.
      
    • 

      Magellan

      Non-banking financial institution specialized in servicing the healthcare sector, present in Poland, the Czech Republic and Slovakia. Our fund completed a capital increase in 2003 that helped the company broaden its product offer and continue its market expansion. In 2007 the company debuted on the Warsaw Stock Exchange. EI continues to control 68% of Magellan following the IPO.
      
    • 

      Nay

      Nay operates Slovakia's largest network of stores selling white and brown goods. In 2005 our fund acquired a 48% stake in Nay from its founders.
      
    • 

      Netrisk.hu

      The largest online insurance broker in Hungary, active also in Romania. In 2010 our fund acquired an 80% stake in Netrisk.hu.
      
    • 

      NordGlass

      One of Europe's leading manufacturers of automotive windshields and the largest distributor in Poland. In 2007 our fund bought out 100% of the company in a leveraged buyout. We structured the transaction as an MBI, retaining and strengthening the existing management team.
      
    • 

      Novaturas

      The largest tour operator in the Baltic States. Our fund invested in Novaturas in 2007. We became the company's majority shareholder with a 71% stake following a debt- and equity-financed transaction.
      
    • 

      Profi

      One of the largest supermarket chains in Romania. Our private equity fund acquired the entire share capital of Profi Rom Food Group in an MBI deal in 2009.
      
    • 

      Scitec Holding

      Leading international producer and distributor of sports nutrition products known primarily under the Scitec Nutrition brand. Our fund acquired a significant majority stake in Scitec in 2012 in a buyout transaction.
      
    • 

      Siveco

      Romania's largest software developer providing enterprise resource planning (ERP) solutions for companies, and software for public and local administrations. Our fund acquired Siveco's shares in 2005 in a combined capital increase and buyout transaction. Enterprise Investors owns 23% of Siveco.
      
    • 

      Skarbiec Asset Management Holding

      The holding comprises a mutual fund manager and a transfer agent, and is one of Poland's largest financial institutions. In 2006 our fund bought out 100% of Skarbiec.
      
    • 

      Sklepy Komfort

      Poland's largest floor covering store network operating 120 stores in the country. Our funds purchased 100% of the Komfort retail chain in 2007 in a leveraged buyout.
      
    • 

      United Oilfield Services

      Polish company providing seismic, drilling and well completion services to companies involved in oil and gas exploration and production in the country. In particular, UOS provides its customers with technologies and expertise needed to unlock Poland's shale gas reserves. Our fund provided equity financing for a minority interest in the company in 2012.
      
    • 

      Wento

      The company handles the construction of wind farms in Poland. Our private equity fund set up the company in 2012. Wento is 100% owned by the fund.
      
    • 

      X-Trade Brokers

      The largest brokerage house focused on forex, commodities, indices and CFD products in Central and Eastern Europe. In 2011 our fund acquired a significant minority stake in the company, which is expanding globally.
      
    • 

      Zelmer

      The largest Polish manufacturer of small home appliances. Our fund acquired 49% of Zelmer in an IPO on the Warsaw Stock Exchange during the company's privatization in 2005 and in a subsequent tender offer.
      

     

     

    Buyout

    Companies that want to keep up with dynamic developments on the market usually require external support: this can help them make the most of a strong market and enjoy the benefits of sector leadership. In many cases companies have insufficient resources and equity to finance exponential growth of organizational structures, technology, and human resources. Private equity funds specialize in taking advantage of the opportunities offered by the market.
    In the case of buyout transactions, we acquire part of the business – usually a majority stake. The founders often stay on as our partners in the company. Many entrepreneurs count on us to help them make a seamless transition to the next stage of their company’s development, in particular by contributing to the strategy, helping expand the business, e.g. through mergers and market acquisitions, and implementing sound financial practices. They also value our corporate governance and capital markets expertise.
    When we invest in dynamic companies operating in fast-growth markets we are prepared to wait for the effects of our work longer than most other financial investors. For example, unlike our competitors, we often postpone paying out dividends.
    We have completed buyout transactions in Kruk, Kofola, Zelmer and AVG Technologies.
    

    KRUK

    Kruk, the largest company now operating in the retail receivables market in Poland and Romania, was established in Wrocław by two young lawyers in 1998. The founders accurately identified demand for the outsourcing of retail debt collection in Poland's telecommunications, power, and retail banking sectors. The company developed very dynamically from the outset, but the entrepreneurs had insufficient capital and resources to keep up with the growth in the market. EI became interested in the company, and in 2003 our fund acquired a controlling stake. The founders kept the remainder, and one of them is still the company's CEO.
    A year later our fund made a follow-on investment in Kruk. This capital was spent on developing technology and organizational structures to keep up with the increasing customer numbers and the high volume of receivables being handled.
    As shareholders, together with the senior managers we drew up a strategy for Kruk’s further development. We jointly strengthened the management team and introduced new risk management and portfolio valuation procedures. Kruk developed its debt purchasing business and set up one of the first securitization funds on the market. In parallel, the company has also been expanding its presence on the receivables market in Romania, where it now leads as well as in the Czech Republic.
    In 2011, Kruk successfully debuted on the Warsaw exchange. Our fund sold a considerable part of its stake in the public offering, yielding a stellar return on the investment.
    

     

     

     

     

    
    

    Expansion financing

    Expansion capital is a form of financing that allows for the growth and expansion of a company. The capital may be used to finance the acquisition of a competitor or increase production capacity, to develop and market the product, or to provide additional working capital.
    Enterprise Investors offers not just capital but also knowledge, experience and partnership in the process of making key business decisions. Unlike banks, we do not give loans but invest our capital directly, and thus share the risk of the investment with the entrepreneur. What sets us apart from industry buyers is that we are never in direct competition with the entrepreneur. When we invest in a business, we undertake to support the current owners and management board in realizing their company's development strategy. Unlike stock market investors, when reaching decisions we do not rely solely on the current state of the market, preferring to take the longer-term view.
    Our funds have provided expansion financing to many successful firms in the CEE region, most notably W.Kruk, X-Trade Brokers, Dino, Wento and Macon. Our venture fund recently financed the development of Dystrybucja Polska, PBKM and Webmedia.
    

    MACON

    Established in the 1960s and privatized in the 1990s, Macon is the leading construction materials producer in Romania.
    Enterprise Investors decided to acquire 100% of Macon in 2006. We believed that combining Macon’s good market position and growth prospects with EI’s unique expertise in building value, corporate
    governance and management would strengthen Macon’s position and help it become a market leader. Macon’s financial results soon proved that assumption to be right. Thanks to effective cooperation with Enterprise Investors and especially following Macon’s complex restructuring, its sales increased by 30% and net profit grew by 70% in just one year.
    Macon’s further development strategy demanded the acquisition of a competitor. We found Simcor Group to be the best choice, and EI provided equity financing to Macon to acquire a majority stake. The €53 million transaction secured a leading position for Macon on its market.
    

    
    

    "Combining the market potential of Macon and Enterprise Investors' unique experience in effective management, corporate governance and building company value has enabled us to become the clear market leader. The acquisition of Simcor Group financed with the capital provided by EI-managed funds was the strongest contributing factor in this process."

    Marius Martin, President of Macon
    
    
    

    Management buyout

    Because no one knows a business better than its management team, measurable results are easier to achieve when a company's manager are also its shareholder. As a shareholder, Enterprise Investors is keen to maximize the managershareholder synergy to increase the value of each portfolio company. We achieve this by working closely with the management team when acquiring a stake in its business. This team carries out the intentions of the company's shareholders and also helps shape its strategies, objectives, and operating plans. What matters most in a management buyout is the motivation of the company's managers to meet not only the immediate strategic goals but also those spanning the next few years.
    To help develop management buyout and buyin transactions, since 2004 Enterprise Investors has sponsored the MBI & MBO Club – an informal networking organization affiliating managers from Central and Eastern Europe who are interested in pursuing management buyouts or buyins. We completed management buyins in Skarbiec, Gamet and Artima, the last two thanks to contacts made at club meetings.
    

    SKARBIEC

    Skarbiec is one of the oldest asset management companies in Poland. The company has secured a significant part of Poland's highly competitive investment funds market, which is dominated by fund
    managers tied to major banks. Skarbiec enjoys such a strong position thanks to its management team's creative approach to new product development, as well as to its sound management of funds entrusted to them by clients.
    In 2007 our fund bought 100% of the shares of Skarbiec, completing the first takeover of an asset management company by a private equity fund in Central and Eastern Europe. Soon after the transaction we sold a 7% stake in Skarbiec to a group of 12 key managers, who also benefit from a management options scheme that we introduced.
    The managers of Skarbiec have invested considerable resources of their own alongside us to purchase shares in their company, thereby demonstrating their confidence in the continuing growth of the business. For us as investors, this represents an additional guarantee of success.
    Our decision to invest in Skarbiec was based on several factors. The experience and competence of the management team were fundamental, as was the favorable macroeconomic outlook that facilitated the rapid growth of mutual funds. These, together with our financial sector expertise, are helping raise the company's value.
    

    
    

    "Enterprise Investors, as co-owner of Skarbiec, actively supports the company's growth. The investor's experience in the financial services sector allowed Skarbiec to develop much more dynamically in recent years. Also, the change of ownership has created many new opportunities for us."

    Bogusław Grabowski, President of Skarbiec Asset Management Holding
    

    Leveraged buyout

    Many of the private companies established in Central and Eastern Europe in the early 1990s had the opportunity to develop rapidly. Their founders have built businesses that now represent significant value and hold leading positions on their markets. The private equity funds managed by Enterprise Investors are keen to invest in these types of companies because of their potential to develop further.
    By selling 100% or close to 100% of their shares, the owners of these companies harvest their investment. They can do so for a variety of reasons – to find a successor before retiring, realize new business ideas, or devote their time to personal interests or charitable activities.
    Buying such a significant stake in companies with a high market value requires a greater capital commitment. This is why we use bank debt to finance so-called leveraged buyout transactions. The use of bank debt creates the potential to generate higher returns for the buyer and can make the transaction more attractive for the seller.
    We completed one of the first buyout transactions leveraged with bank debt in this part of Europe. Our track record in securing debt and building a financial structure for leveraged buyout transactions is unparalleled on the CEE private equity market. Our most significant leveraged buyout transactions to date include the acquisitions of Nomi, NordGlass, Sklepy Komfort and Harper Hygienics as well as the purchase of a controlling stake in DGS.
    

    NORDGLASS

    NordGlass is one of Europe’s largest manufacturers of automotive windshields. In 2007 our fund acquired 100% of the company from its founders in a leveraged buyout.
    Established in 1991 in Poland, the company operates two modern plants located near the Baltic coast that produce windshields for almost all models of passenger cars, trucks, buses and trains. NordGlass also has a nationwide windshield distribution and installation network. The firm has gained its unique position on the Polish and European markets thanks to the high quality of both its products and its customer service.
    The management team that took over in 2007 has systematically implemented the company’s growth strategy. As part of this appoach NordGlass has established its own sales organization in the key markets of the European Union, including Germany, France and the United Kingdom. By dynamically increasing sales in its own fitment centers, NordGlass is also helping raise professional standards across Poland’s windshield replacement market. The company is servicing the bank loan used for this transaction in line with the repayment schedule.
    

    
    

    "Since its inception, NordGlass has applied the most advanced production technologies and a flexible approach to customer needs. We built a company that is admired by foreign competitors and that became an attractive acquisition target for such a reputable investor as EI. This collaboration has allowed us to double revenues in only a few years and gain EU markets at the expense of the global giants in the industry."

    Grzegorz Łajca, President of NordGlass
    

     

     

    Enterprise Venture Fund I

    
    In 2008 we created our first venture fund, Enterprise Venture Fund I, with total capital of €100 million.
    The fund finances the expansion of small and medium-sized enterprises operating in the technology sector as well as in traditional sectors in Central and Eastern European countries.
    We are keen to work with companies that are active on the market, have a proven and successful business model and generate revenues and profits, at least at the operating profit level.
    This fund invests between €1 million and €6 million to finance the expansion of companies in exchange for a minority stake.