ING Bank planning new equity fund
Last week, the Dutch-based Internationale Nederlanden Group (ING) acquired ownership of Barings Group, the bankrupt London-based merchant bank.
That acquisition, especially of Baring Asset Management division, is a perfect match with ING Bank's present commercial activity and future plans, said Stan Szczurek, president of ING Bank's Warsaw branch office.
"In this case one plus one equals three," the banker said.
ING Bank is already on the ground with knowledge of the Polish market and its companies, Szczurek said, and that knowledge can help steer the course of Baring's $20 million equity investment portfolio in Poland.
"By acquiring Barings, we've acquired that sort of business," Szczurek said. "It dovetails beautifully with what we've planned. It makes it quicker."
Although ING Bank's main focus here has been commercial banking - with a strategic investment in Bank Slaski, the bank plans to set up this year its first regional Central and Eastern European equity fund, Szczurek said.
Further details, such as fund size and how the fund will operate, were not available at press time from the Warsaw or Amsterdam office.
Market watchers greeted the news of the acquisition and another regional equity fund with general optimism.
"Barings has clients interested in coming in and ING is already here - that's a nice fit," said Bob Creamer of Raiffeisen Capital and Investment Polska's international sales division. Derek Chrusciak, managing partner of Ernst & Young, said the equity market is experiencing a downward drift with investors apparently losing interest in the market.
"I don't see that changing unless ING is coming in with a lot of money," he said, estimating a portfolio of $30-$50 million would be needed to jump start the stock market.
"My own gut feel is that if people like ING get into (equity) investments medium term - if they do it successfully - that would encourage others," he said. "And that would be very encouraging."
Poland has some medium-term (5-10 years), institutional investors but not enough, Chrusciak added.
Michael North, president of Raiffeisen Capital and Investment Polska, said an incoming equity fund would have limited effect on market development here.
"The real mark of development is more dependent on the legal side of the Polish market," North said, adding that tight controls on the Warsaw Stock Exchange were crimping development of the equity market.
It's much easier to acquire unlisted shares than listed shares, he said. "The benefits of having a listed (stock) are lost."
That acquisition, especially of Baring Asset Management division, is a perfect match with ING Bank's present commercial activity and future plans, said Stan Szczurek, president of ING Bank's Warsaw branch office.
"In this case one plus one equals three," the banker said.
ING Bank is already on the ground with knowledge of the Polish market and its companies, Szczurek said, and that knowledge can help steer the course of Baring's $20 million equity investment portfolio in Poland.
"By acquiring Barings, we've acquired that sort of business," Szczurek said. "It dovetails beautifully with what we've planned. It makes it quicker."
Although ING Bank's main focus here has been commercial banking - with a strategic investment in Bank Slaski, the bank plans to set up this year its first regional Central and Eastern European equity fund, Szczurek said.
Further details, such as fund size and how the fund will operate, were not available at press time from the Warsaw or Amsterdam office.
Market watchers greeted the news of the acquisition and another regional equity fund with general optimism.
"Barings has clients interested in coming in and ING is already here - that's a nice fit," said Bob Creamer of Raiffeisen Capital and Investment Polska's international sales division. Derek Chrusciak, managing partner of Ernst & Young, said the equity market is experiencing a downward drift with investors apparently losing interest in the market.
"I don't see that changing unless ING is coming in with a lot of money," he said, estimating a portfolio of $30-$50 million would be needed to jump start the stock market.
"My own gut feel is that if people like ING get into (equity) investments medium term - if they do it successfully - that would encourage others," he said. "And that would be very encouraging."
Poland has some medium-term (5-10 years), institutional investors but not enough, Chrusciak added.
Michael North, president of Raiffeisen Capital and Investment Polska, said an incoming equity fund would have limited effect on market development here.
"The real mark of development is more dependent on the legal side of the Polish market," North said, adding that tight controls on the Warsaw Stock Exchange were crimping development of the equity market.
It's much easier to acquire unlisted shares than listed shares, he said. "The benefits of having a listed (stock) are lost."
