In the first half of the current year Private Equity Managers S.A. Group (GK PEManagers, Group) generated a net profit of PLN 6.5 million. The funds that it manages invested a total of over PLN 275 million before the publication of the report. The shareholders also received the first tranche of dividend at PLN 14.41 per share.
‘A very important aspect of our business expansion strategy is to build the largest possible asset base subject to a fixed management fee,’ said Cezary Smorszczewski, Chairman of the Board of Private Equity Managers S.A., ‘We plan to prepare 3 new funds, one of which will be a fintech fund with a focus on investments in companies developing new technologies in financial services. Another fund will focus on e-commerce and marketplace companies, as well as on their affiliates operating in the field of digital economy,’ he added.
In the first half of 2016, PEM reported revenues of PLN 22.9 million, of which 20.8 m represents the revenues from a fixed management fee. A year-on-year increase of revenues by 13% was due to increasingly higher assets under management, which, at the end of June 2016, stood at PLN 2.3 billion gross. A significant increase in assets under management was reported for two main funds: MCI.TechVentures (+ 21% Y/Y) and MCI.EuroVentures (+ 10%).
Net profit generated in the first half of 2016 amounted to PLN 6.5 million.
Prospects for the funds and new initiatives
Share of the new investments in the current structure of the MCI.EuroVentures Fund, reported for the last 12 months, is almost 40%. These are the following: ATM, Dotpay, eCard and Lifebrain. The total amount invested in these companies is PLN 330 million, though the process of value creation has only just begun.
‘Historical returns for this fund of between 2.5 and 4 CoC (cash on cash) were reported within 3-4 years of the investment. That’s why I believe that our financial results do not yet fully reflect the growth potential of the company’s value,’ said Cezary Smorszczewski.
The MCI.TechVentures Fund portfolio includes companies using a business model that has a potential for further dynamic growth. The companies aspiring to become global market leaders, such as Gett, fintech companies (Azimo, iZettle) and Auctionata.
Building shareholder value
The company’s shareholders have adopted a resolution to pay a dividend of PLN 14.41 per share from the profit for 2015. The dividend will be paid in two instalments. The first instalment of PLN 8 per share was paid on 15 July, while the second instalment of PLN 6.41 per share will be paid on 30 September 2016. The value of the company, taking into account PLN 158 million from dividends paid out over the past three years, currently stands at over PLN 520 million.