In the last 2017 newsletter, I discussed our record-high investment pace and the unprecedented speed at which the portfolio of the fourth Genesis fund was being filled.
It may perhaps sound a bit surprising, but I would actually not describe the first months of 2018 in any other way.
The end of 2017 and the beginning of 2018 will quite certainly hold an exceptional positi on in the almost twenty-year history of Genesis Capital. In mid-February, we acquired, together with Poland-based Avallon, the Polish and Czech divisions of EQOS Energie. For the GPEF III fund this was already the fifth investment over the last twelve months. In mid-May, we successfully sold a 47% stake in POS Media Group, which marked the first successful exit of the youngest Genesis fund.
The exceptional investment pace also reflects the other major development—preparations for the setup of a new fund targeting EUR 40 million, which we have launched this spring. Genesis Growth Equity Fund I (GGEF I) will focus on smaller promising businesses in the Czech Republic and Slovakia with a significant growth potential. Through this fund, Genesis Capital is entering into a segment where the supply of equity financing has so far been limited.
GGEF I will have an autonomous ownership structure and an independent team composed of seasoned private equity professionals. The new fund represents an important milestone for us: a group of Genesis funds is emerging, geared towards market segments of small and medium-sized enterprises, complementary in terms of size—and we dare say that we are turning into a leading player in this market in Central Europe. Naturally, the rising number of companies in the GPEF III portfolio and the establishment of GGEF I have precipitated the need to reinforce our team. In this area too we “are running” at a record pace.
The director of the emerging GGEF I fund, Jiří Beneš, an exceptionally experienced professional with a strong track record of numerous successful investments, has become an important member of our team. At Genesis Capital, we now also have a new CFO for the group of Genesis funds, Petr Janovský, while the talented Adam Ruta is a new valuable additi on to our team of analysts.
There is no questi on that talented workers and colleagues are some of the key and lasting values for Genesis Capital. I have no doubt that with Jiří, Petr, and Adam, we will continue in this tradition.
Jan Tauber, Managing Partner of Genesis Capital
You can read the whole newsletter here.
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