Project description
and objectives:
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The proposed project is a private equity fund focusing on businesses in
non-tradable sectors; i.e. companies that are primarily servicing local
markets. Fund manager will seek opportunities to increase value by improving
operations and /or expanding the business. The Fund typically will invest EUR
10 to 20 million of fund equity per transaction.
The Fund will invest in Central-eastern European EU new member states as well
as South-eastern Europe, including Romania, Bulgaria, Croatia, Serbia and
Montenegro, Bosnia and Macedonia.
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Transition impact:
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The Fund will support the development of private companies in the region
through operational and strategic restructuring. The manager will continue
the practice of identifying and developing successful managers, restructuring
and consolidating companies.
EBRD’s role as an investor in the Fund will be seen as a vote of confidence
and will consolidate other investors. This will lend support to a new
multi-fund management team, foster competition, and attract more private
equity to the region.
In addition, the Fund will replicate its successful business models and
structures in the new countries in which it will operate and, due to the
increased fund size and market development, the Fund will use more complex`
transactions such as leveraged buy-outs, management buy-outs/buy-ins, private
equity consortium leads, etc.
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The client:
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The Fund will be managed by RCI GenPar II, L.P. a Guernsey limited
Partnership, which will be owned by the management team.
The management team is well known to the Bank through EBRD investment in the
first Royalton Fund, which is a predecessor fund and was established in 1999.
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EBRD finance:
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The EBRD proposes an equity investment of 20% of the aggregate fund size to a
maximum EUR 50 million.
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Total project cost:
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Total fund size is estimated at EUR 250 million for the final closing. The
first closing target is EUR 100 million.
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Environmental impact:
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The Fund will be required to adopt and implement the EBRD’s Environmental
Procedures for Funds which includes compliance with the EBRD’s Environmental
Exclusion and Referral List and provision of an Annual Environmental Report.
Investee companies will be required to comply, at a minimum, with national
standards for environment, health, safety and labour.
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Technical
cooperation:
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None.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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Company contact:
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Mr. Roman BABKA, Principal Partner
Royalton Partners
Millenium
Plaza
V Celnici 10
117 21 Prague 1
Email: roman@royalton-partners.com
Tel: +420 (221) 033 024;
Fax: +420 (221) 033 025.
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EBRD contact:
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Galia Amirova, Operation Leader: amirovag@ebrd.com
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Business opportunities:
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For business opportunities or procurement, contact the client company.
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General enquiries:
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EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com
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