ANNUAL REPORT 2007 | 2008 - Gimv

Joint venture of network and experience
GIMV AND KBC PE INVEST IN RUSSIA’S BLOSSOMING CONSUMER MARKET
Gimv has concluded a partnership with KBC Private Equity to invest together in the Russian market. Gimv and KBC PE have
attractive complementary experience in Central and Eastern Europe. Gimv can look back on more than twelve year’s experience in
the eastern European market, including funds in Russia and Kazakhstan. For Gimv this partnership represents a follow-on to the
Eagle Russia Fund that was introduced in 2006. KBC PE, for which Central Europe is its second home market, is also continuing to
build in known territory, with offi ces in the Czech Republic, Hungary, Poland and Romania. KBC Bank also recently acquired
Russia’s Absolut Bank. The cooperation runs via a new company, Eagle Capital Partners, which is acting as an investment
consultant.
Each partner plans to invest EUR 10 million a year, bringing the two partners’ total investment over an initial three-year period to
EUR 60 million. The focus is on investments in medium-sized Russian companies in sectors offering good prospects thanks to
growing consumption and rising living standards: food and drink, personal care, leisure, building construction, packaging, pharma,
retailing, telecoms and engineering. The local investment team consists of eight Russian and Western European professionals which
have already been cooperating successfully for several years.
Gimv also manages two funds for the Czech Republic and
Slovakia. Both funds were set up in 2000 and are now in the
divestment phase.
EUR 15 million of Gimv Czech Ventures’ capital of EUR 20.5 million
has been committed by Gimv. Other investors are Fortis
Private Equity and AIG Global Investment Corporation. The latter
company entered the capital at the end of 2005 by buying
out Dresdner Kleinwort Wasserstein (now Allianz Private Equity
Partners).
The second fund, GIMV Czech & Slovak SME Fund, has Gimv
Czech Ventures and the EBRD as its shareholders. Both have
committed EUR 6 million. Two shareholdings were sold during
the past fi nancial year: TNS, which produces parts for the
automobile industry, and Novesta, a manufacturer of rubber
boots. Gimv Czech & Slovak SME Fund is certain to produce
a positive return on liquidation. For Gimv Czech Ventures this
is less certain.
Finally, Gimv also has a holding in Nova Polonia, a Polish fund set
up in 2000. Gimv has a commitment for around EUR 10.5 million
out of a total capital of EUR 58 million. The fund is fully
invested and is now in the divestment stage. Thanks to a small
number of successful exists, including the sale of local energy
producer Praterm in early 2008, this fund will provide Gimv with
an attractive return.
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