The funds managed by Private Equity Managers Group (PEManagers Group, Group) are planning further major investment projects for the upcoming months. PLN 400 mln (ca. EUR 100 mln) has been invested since the beginning of the year.
The digital economy accounts for an increasingly large share of the world’s GDP. In keeping with this trend, the investment scale of PEManagers Group funds investing in Internet and new technology companies is also growing. Since the beginning of the year, the funds have made investments worth more than PLN 400 mln (ca. EUR 100 mln). Further investments are planned to be completed and these amounts are thus expected to continue growing.
“The funds managed by PEManagers have already invested more than PLN 400 mln this year. This amount may significantly increase once we complete the large-scale transactions that we have set our sights on. We cannot disclose any details about them yet. They involve companies from sectors ranging from fintech, through e-commerce to digital transformation,” said Cezary Smorszczewski, President of the Management Board of Private Equity Managers S.A.
Currently, the Group has several hundred million Polish zlotys available for investments and its independent investment capacity amounts to more than EUR 200 mln. It is now considering acquiring additional funds – both by issuing investment certificates and bonds.
“This year we can still complete several investment certificate issues, if the need arises. It is an accessible source of funding and so we can flexibly react to the opportunities that appear in the market. Certificates are an interesting investment and can generate a rate of return of well over ten percent. We work with several banks which are interested in distributing them in the private banking sector. We also have bonds issues ahead of us, both within MCI Group and beyond,” added Cezary Smorszczewski.
Listed on the Warsaw Stock Exchange since April 2015, PEManagers Group achieved a consolidated net profit of PLN 37.6 mln (EUR 8.9 mln) in the first half of 2015, up 80% year-on-year. This means that the annual profit forecast execution rate after the first half of the year reached 73 percent. The Group shares the generated profit with its shareholders. Its dividend policy envisages the distribution of up to 100% of the profit. This year, it has paid out a dividend of PLN 12.04 per share (a dividend rate of 8.30%).
Good financial results are also achieved by key companies from the portfolio of funds managed by PEManagers Group.
“Our investments are doing very well so far, which is reflected by the results of our portfolio companies. Indeks, the largest Turkish IT distributor from the MCI. EuroVentures Fund portfolio, generated an 84% increase in net profit in the second quarter of the year, along with a 100% increase in revenue and a 140% increase in EBITDA as compared to the same period last year. According to the Garanti Securities recommendation issued in August, the stock price of Indeks has a growth potential of over 30%. ABC Data is an equally good investment. The company recorded excellent results in the 1st half of the year and we can see that the Management Board is consistent in its implementation of the previously announced strategy. The investment in ABC Data generates an IRR rate of return of 20-30 percent. The company expects its value to grow to PLN 1 billion by 2018, and I believe that it is on the right track to achieve that goal,” said Wojciech Marcińczyk, Vice-President of the Management Board of MCI Management S.A., which holds more than 70% of the assets under management of PEManagers Group.