Private Equity Managers (PEM) Group generated a revenue of PLN 31.1 million in the first nine months of 2016 from the fixed asset management fee. It established a new fund and is planning to further increase its asset base.
- The total revenue of Private Equity Managers (PEM) Group in the first three quarters of the year totalled PLN 33.5 million, which represents 50% of the result achieved in the same period in 2015. This is due to the lack of the variable fee. At the same time, the revenue generated from the fixed management fee was 10% higher as compared to the same period in the previous year.
- During the first three quarters of 2016, the Group recorded a net profit of PLN 11.1 million, as compared to PLN 41.2 million one year before.
- The Group is working to secure new sources for asset base increase. It has already launched a “Fund of funds” and MCI.CreditVentures is actively working to develop an investment funnel.
“Just as we said, we are trying to limit the impact of the variable fee on our result by increasing the pool of assets on which a fixed management fee is charged. Such initiatives include the establishment of the Private Equity Multifund FIZ fund, managed by Quercus TFI. We are happy that we have been able to successfully complete the first issue of certificates,” said Cezary Smorszczewski, President of the Management Board of Private Equity Managers.
The value of the assets on which PEM has charged the fixed fee in the third quarter increased by 5% year-on-year and gross assets increased by 10% year-on-year. This results from limited growth of the portfolio of companies and new inflow into the funds, which amounted to gross PLN 183 million in that period. At the same time, it is PLN 43 million gross more than in the same period of the previous year.
The investment team of MCI.CreditVentures is actively working on junior and mezzanine debt investments. “We are confident that our new offer will be successful among both businesses and investors. We offer a new form of business financing to businesses in Poland and in the wider region. It is a debt instrument which is more flexible as compared to bank debt and still significantly cheaper than share issue. Investors will be able to seize an opportunity to achieve very attractive rates of return when investing in share-based funds,” said Krzysztof Konopiński, CFO at Private Equity Managers and Managing Director at MCI.CreditVentures. “From PEM’s perspective, it is essential to have a new source of growth of the assets on which management fees are charged,” added Krzysztof Konopiński.
Private Equity Managers Group is also preparing for its first issue of public bonds. The prospectus has already been filed with the Polish Financial Supervision Authority. The funds acquired will be earmarked for new investment projects. The issue of bonds by a fund managed by PEM is a unique opportunity for a wide group of investors to invest in the medium and long-term in a business entity involved in public and non-public companies related to the digital economy.
Private Equity Managers is one of the most generous companies listed on the Warsaw Stock Exchange when it comes to sharing profit with its shareholders. On 30 September the company paid the second tranche of dividend from its 2015 profit. It amounted to PLN 14.41 per share, which represents a rate of dividend of 12.8%.