Asked about the 2016 projections, Cezary Smorszczewski, President of the Management Board of Private Equity Managers, said that the jury was still out on their publication date. He suggested that the recent stock market downturn may make it difficult to plan this year’s performance.
The funds managed by PEM spent ca. 0.5 billon on investments in 2015 and this year the financial resources to draw on are even ampler. Cezary Smorszczewski also announced that the fund’s operations will be scaled up, with prospects of involvement in increasingly larger transactions in Poland and abroad in 2016. Other plans also envisage active contribution to further consolidation of the electronic payments market. The ultimate scale of this year’s investment will hinge on the availability of interesting investment projects matching the managed funds’ strategy.
The President of PEM also confirmed that the Management Board would recommend to the General Meeting of Shareholders the payment of 100% of net profit as dividend, which validated his assurances made to the shareholders during the IPO in March 2015.
The largest of the funds, MCI.TechVentures 1.0, is expected to reach a 15-20% return rate in 2016, among others because almost all of its assets are concentrated in private corporations, which hedges it against the volatility of the Polish stock market. The fund’s publicly listed asset – Windeln.de – is now getting a boost from the good conditions prevailing in the German stock exchange.
Excerpt from the interview:
“Parkiet: How will future investment be funded?
Cezary Smorszczewski: We currently have a cash surplus. As evidenced by the bidding procedure for Home.pl, we are capable of easily investing amounts exceeding PLN 0.5 billion. In parallel we are continuously building up our liquidity buffer to be prepared to engage in several large buy-out investments during the year. We acquire capital by selling investment certificates in Poland and abroad, securing debt financing from banks and issuing bonds.”