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Investment strategy
The amount invested in selected fast-growing
companies will be between EUR 2 and EUR 10
million.
The fund’s geographic structure is focused on
Slovenia, Croatia, Bosnia and Herzegovina, Serbia,
Macedonia, Romania, Bulgaria, Moldavia and
Albania, with an emphasis on the countries of the
former Yugoslavia.
The fund will strive to gain access to companies with
the ability to become leaders in a specific niche or on a
particular market through their products and services.
Investments will be focused on companies from
the fields of financial services, distribution and
logistics, communications and media, healthcare
Challenges in 2008:
To make at least three investments;
To attract additional investors to the fund.
Closed-end investment funds in South
Eastern Europe
KD Kapital owned two subsidiaries among
management companies established in the
privatisation process in the Federation of Bosnia and
Herzegovina, the Republic of Srpska and Montenegro:
A stake of 80.5 percent in KD Mont a. d.,
Podgorica which manages the investment fund MIG;
A stake of 51.0 percent in VIB a. d., Banja Luka
which manages the investment fund VIB.
and environmental protection. Investments will
focus on small and medium-sized enterprises with
annual revenues of between EUR 5 and EUR 75
million.
By providing capital and maintaining an active
management policy, the fund’s managers aim to
increase the value of these companies and prepare
them for sale to strategic investors.
Operations in 2007
The fund began operating in 2007 and acquired
liabilities in the amount of EUR 31 million.
The largest investor is KD Holding while other
investors are primarily Slovenian banks and the Swiss
fund SECO. In 2007, the fund established an office in the
area of investing and reviewed more than 120 potential
investments.
As at 31 December 2007, the company
ABDS d. d. was managed by KD Kapital on behalf
of KD Investments (now KD Skladi) which owned a
58.79 percent stake. ABDS manages the investment
fund BIG. KD Kapital purchased ABDS from KD
Skladi in 2008 (15 February 2008).
KD Kapital also holds direct investments in the
following privatisation funds:
A 12.13 percent stake held directly in BIG and
17.01 percent of shares of MIG.
Significant stakes in these management companies
enable KD Kapital to actively participate in their
management. The total value of the three investment
funds was EUR 126 million as at 31 December 2007.
Based on the management companies’ reports, the
net value of the funds was EUR 220 million.
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