VCP: New entrant on private equity market
"We should be able to find enough opportunities in this large, and potentially strong, country to invest more than €500 million in equity over the next five years," says Heinrich Pecina, senior partner at VCP. He adds, however, that the firm does not run a dedicated venture capital fund that "has raised a certain amount of money which it now needs to invest."
Pecina is keen to emphasize the firm's investment strategy is opportunity driven and is not focused on any specific sector. He adds, however, "we have shied away from start-ups, from early-stage businesses and the New Economy" and turnaround companies. VCP is seeking investment opportunities in "real things that you can touch", with the minimum scale of a single investment expected to be at no less than €10 million. He adds that the typical time horizon for an investment would be around six years.
Pecina does not rule out following the strategy adopted in Hungary, where the firm has acquired substantial stakes in two listed companies. He also adds that the stock exchange provides "an ideal exit path, which guarantees better prices than a trade sale."
VCP is currently negotiating three deals and hopes to conclude at least one of them "before the summer." The firm has so far made two investments in this country, acquiring full control of Polski Gaz Holding liquefied petroleum gas distributor earlier this year, and a 43 percent stake in construction materials and transport company Cemet. The total value of these investments is currently below €50 million. The company has also advised on several public offerings by local companies over the five years of its existence. Wolfgang Bauer, chief executive at VCP Polska, says the company is currently advising on several mergers and acquisitions involving local firms.
Bauer estimated the M&A market would enjoy growth rates of more than 20 percent over the next three years, pointing out that the country has stood out from the rest of Europe in that the slump in M&A activity has been less drastic. He expects, therefore, the rebound to also be less energetic. The firm, he says, has experience in such sectors as chemicals, including the petrochemical industry. VCP has worked with several of the main protagonists of the ongoing regional consolidation of the oil sector, including Hungary's MOL and could be well placed to advise on the process. Biotechnology is another sector where he expects an upswing in activity in the coming years, as well as pharmaceuticals, cosmetics and food processing, where the increased competition from the established European Union member states will enforce further consolidation.
Pecina is keen to emphasize the firm's investment strategy is opportunity driven and is not focused on any specific sector. He adds, however, "we have shied away from start-ups, from early-stage businesses and the New Economy" and turnaround companies. VCP is seeking investment opportunities in "real things that you can touch", with the minimum scale of a single investment expected to be at no less than €10 million. He adds that the typical time horizon for an investment would be around six years.
Pecina does not rule out following the strategy adopted in Hungary, where the firm has acquired substantial stakes in two listed companies. He also adds that the stock exchange provides "an ideal exit path, which guarantees better prices than a trade sale."
VCP is currently negotiating three deals and hopes to conclude at least one of them "before the summer." The firm has so far made two investments in this country, acquiring full control of Polski Gaz Holding liquefied petroleum gas distributor earlier this year, and a 43 percent stake in construction materials and transport company Cemet. The total value of these investments is currently below €50 million. The company has also advised on several public offerings by local companies over the five years of its existence. Wolfgang Bauer, chief executive at VCP Polska, says the company is currently advising on several mergers and acquisitions involving local firms.
Bauer estimated the M&A market would enjoy growth rates of more than 20 percent over the next three years, pointing out that the country has stood out from the rest of Europe in that the slump in M&A activity has been less drastic. He expects, therefore, the rebound to also be less energetic. The firm, he says, has experience in such sectors as chemicals, including the petrochemical industry. VCP has worked with several of the main protagonists of the ongoing regional consolidation of the oil sector, including Hungary's MOL and could be well placed to advise on the process. Biotechnology is another sector where he expects an upswing in activity in the coming years, as well as pharmaceuticals, cosmetics and food processing, where the increased competition from the established European Union member states will enforce further consolidation.
