The document summarizes key discussions from the 13th Annual CEE Private Equity Forum held in Vienna in March 2009. Some of the main points discussed include:
- Private equity in Central and Eastern Europe is facing difficulties due to the global economic downturn and deal activity has slowed significantly.
- However, the crisis also presents opportunities for private equity firms to invest in distressed assets or provide mezzanine financing for deals.
- Countries in the region have been identified as "winners" or "losers" depending on factors like currency stability and debt levels, with Poland, the Czech Republic and Slovenia seen as winners and Russia/Ukraine as losers.
- Private equity firms need to focus on supporting existing portfolio
08467 thought leadership_marine_sector_v14White & Case
Restructuring & Beyond: The marine industry’s routes to safety
Survival strategies and new opportunities for companies, banks and investors
in the marine sector
CBRE 31-12-12, global vision about property markets. A little late to share it, but an interesting document to keep up-to-date with the real estate investment world.
08467 thought leadership_marine_sector_v14White & Case
Restructuring & Beyond: The marine industry’s routes to safety
Survival strategies and new opportunities for companies, banks and investors
in the marine sector
CBRE 31-12-12, global vision about property markets. A little late to share it, but an interesting document to keep up-to-date with the real estate investment world.
Traditionally, and in the layman’s view of the word, venture is defined as high risk/high reward, early-stage investment. The model comes from Silicon Valley where the maturity of the eco-system makes early-stage a reasonably predictable activity. In Europe however, this part of the market is now left to business angels, government-subsidised funds, and a handful of the larger VCs which can afford to subsidise this largely money-losing activity to feed their larger later-stage funds. VCs have largely deserted early-stage and are now focusing their attention on expansion capital.
Etude PwC sur les fusions-acquisitions dans le secteur européen des services ...PwC France
http://pwc.to/YE2Uqa
Sharing Deal Insight fournit des perspectives sur les dernières tendances et les futurs développements dans les services financiers. PwC a analysé les données fournies par mergermarket, Reuters et Dealogic de transactions annoncées et celles en attente de clôture au cours de l’année 2012. Les transactions analysées portent sur une part d’acquisition supérieure à 30% - ou sur une part importante donnant le contrôle effectif à l’acquéreur.
It has been seven years since the last financial crisis. In that seven-year period, the total global debt has increased by even more than it did in the seven years previous (2000-2007). From the end of 2007 through to the end of the first half of last year, total global debt increased by 40%, or $US 57 TRILLION! This massive increase in debt has been a consequence of easy money in a low interest rate environment aided and abetted by programs of quantitative easing (the provision of liquidity by central banks) in order to promote economic growth and investment.
The first quarter managed to record some positive results overall, despite severe declines in some sectors.
THIRD QUARTER 2015 RETROSPECTIVE AND PROSPECTIVE We’ve Seen This Movie BeforeRobert Champion
Global markets remained in turmoil as concerns regarding the global economy persisted. While much of the international focus was centred around the slowing economy in China, there were few places that investors could hide as even cash, paying little to negative interest in some parts of the world, was a relative winner in the quarter.
NekretnineSrbije.com su sveobuhvatan i detaljan komercijalni portal na kome možete naći objedinjenu ponudu nekretnina, kako fizičkih lica tako i agencija. Naš cilj je da proces prometa nekretnina, bilo da je u pitanju prodaja, kupovina ili iznajmljivanje, učinimo što jednostavnijim i zabavnijim. Takođe, na portalu NekretnineSrbije.com je moguće naći širok spektar pratećih usluga kao što su advokati, banke, agencije za selidbe i mnogi drugi.
Traditionally, and in the layman’s view of the word, venture is defined as high risk/high reward, early-stage investment. The model comes from Silicon Valley where the maturity of the eco-system makes early-stage a reasonably predictable activity. In Europe however, this part of the market is now left to business angels, government-subsidised funds, and a handful of the larger VCs which can afford to subsidise this largely money-losing activity to feed their larger later-stage funds. VCs have largely deserted early-stage and are now focusing their attention on expansion capital.
Etude PwC sur les fusions-acquisitions dans le secteur européen des services ...PwC France
http://pwc.to/YE2Uqa
Sharing Deal Insight fournit des perspectives sur les dernières tendances et les futurs développements dans les services financiers. PwC a analysé les données fournies par mergermarket, Reuters et Dealogic de transactions annoncées et celles en attente de clôture au cours de l’année 2012. Les transactions analysées portent sur une part d’acquisition supérieure à 30% - ou sur une part importante donnant le contrôle effectif à l’acquéreur.
It has been seven years since the last financial crisis. In that seven-year period, the total global debt has increased by even more than it did in the seven years previous (2000-2007). From the end of 2007 through to the end of the first half of last year, total global debt increased by 40%, or $US 57 TRILLION! This massive increase in debt has been a consequence of easy money in a low interest rate environment aided and abetted by programs of quantitative easing (the provision of liquidity by central banks) in order to promote economic growth and investment.
The first quarter managed to record some positive results overall, despite severe declines in some sectors.
THIRD QUARTER 2015 RETROSPECTIVE AND PROSPECTIVE We’ve Seen This Movie BeforeRobert Champion
Global markets remained in turmoil as concerns regarding the global economy persisted. While much of the international focus was centred around the slowing economy in China, there were few places that investors could hide as even cash, paying little to negative interest in some parts of the world, was a relative winner in the quarter.
NekretnineSrbije.com su sveobuhvatan i detaljan komercijalni portal na kome možete naći objedinjenu ponudu nekretnina, kako fizičkih lica tako i agencija. Naš cilj je da proces prometa nekretnina, bilo da je u pitanju prodaja, kupovina ili iznajmljivanje, učinimo što jednostavnijim i zabavnijim. Takođe, na portalu NekretnineSrbije.com je moguće naći širok spektar pratećih usluga kao što su advokati, banke, agencije za selidbe i mnogi drugi.
Private Debt Investor is a global publication tracking the institutions, the funds and the transactions shaping the private debt markets.
What's included?
Seven things you need to know about Europe.
How to avoid an over-reliance on the UK, using a pan-European approach.
Blackrock's Stephen Caron on Europe's untapped prospects.
A European roundtable revealing opportunities in specialisation, regulation and the growth of markets outside the UK.
The Elevator, Private Equity Magazine Editor, Patrick Gruhn discusses the impact of the current world financial crisis on the Alternative Investment fund Industry with Julian Stockley-Smith, Joint CEO of Geneva based JP Fund Services SA
How Corporate Image in Ukraine, in times of crisis, can help or hinder global reputation for multi-nationals
By Marcus Stober
Vice President & Country Manager, Mmd Ukraine
European Business Association
Roundtable - November 27th, Kiev
The Ukrainian Venture Capital and Private Equity Association (UVCA) and the audit and consulting company Kreston Ukraine present the “Ukraine venture capital and private equity markets 2020” annual review, which also includes data for 8 months of 2021.
According to the results of 2020, Ukrainian technology companies and their investors closed 188 deals with investors worth USD 533.5 million. About 50% of the deals are small grants (25 and 50 thousand USD) from the Ukrainian Startup Fund. For 2020—2021, it has invested USD 5.3 million in Ukrainian projects.
Just three years ago, Ukraine did not have a single unicorn among its startups. Nowadays, as many as five of them — Gitlab, Grammarly, Bitfury, People.ai, and Ring — raised USD 1.3 bln funding and dominate the global market.
In this review, we analysed the key market trends, such as “investment focus on software projects”, “increase of foreign investors in the Ukrainian market”, “growing quality of Ukrainian startups and their interest in smart money” for the first time. The key drivers and barriers to market development were identified — the respondents noted that despite the imperfect regulatory framework, the country still has enough private capital to promote the sector.
Generally, all market players are unanimous in their outlooks and are quite optimistic about further market development. According to 81% venture and 67% private equity investors surveyed, all quantitative indicators are likely to grow, and high-tech industries traditionally represent the most promising ones.
Ukrainian investors primarily point to the experience and qualification of the team (according to 94% venture and 17% private equity investors surveyed) and the market potential of the business idea (according to 82% venture and 83% private equity investors surveyed), among the key factors for investment decisions. On the other hand, when choosing an investor, startups consider their industry expertise, investment terms, and ‘smart money’ they can get.
The study results show that Ukrainian companies offer attractive, relevant, and globally competitive solutions and demonstrate sustainability and adaptability in COVID-19. Ukraine is gradually transforming from a talent and idea exporter into a big international venture capital market player.
In RiskMonitor, Allianz Global Investors (AllianzGI) together with Investment & Pensions Europe (IPE) magazine surveys European institutional investors’ perceptions of capital market, regulatory and governance risk.
This paper proposes a new method for measuring the degree to which the domestic capital stock is self-financed. The main idea is to use the national accounts to construct a self-financing ratio, indicating what would have been the autarky stock of tangible capital supported by actual past domestic past saving, relative to the actual stock of capital. We use the constructed measure of self-financing to evaluate the impact of the growing global financial integration on the sources of financing domestic capital stocks in developing countries. On average, 90% of the stock of capital in developing countries is self financed, and this fraction was surprisingly stable throughout the 1990s. The greater integration of financial markets has not changed the dispersion of self-financing rates, and the correlation between changes in de-facto financial integration and changes in self-financing ratios is statistically insignificant. There is no evidence of any "growth bonus" associated with increasing the financing share of foreign savings. In fact, the evidence suggests the opposite: throughout the 1990s, countries with higher self-financing ratios grew significantly faster than countries with low self-financing ratios. This result persists even after controlling growth for the quality of institutions. We also find that higher volatility of the self-financing ratios is associated with lower growth rates, and that better institutions are associated with lower volatility of the self-financing ratios. These findings are consistent with the notion that financial integration may have facilitated diversification of assets and liabilities, but failed to offer new net sources of financing capital in developing countries.
Authored by: Joshua Aizenman, Brian Pinto, Artur Radziwill
Published in 2004
The Catalyst bond market opened by Warsaw Stock Exchange has become an important element of the Polish securities market structure.
We hereby present the 2nd Edition of the Report, summarizing the 4 years of operations of the WSE Catalyst bond market, with special con-sideration of municipal bonds, cooperative bonds and corporate bonds.
This paper draws on the experience of emerging Europe and argues that foreign capital is an enviable development opportunity with tail risks. Financial integration and foreign savings supported growth in the EU12 and EU candidate countries. We argue that this was possible because of EU membership (actual or potential) and its role as an anchor for expectations. In contrast, the eastern partnership states did not benefit from the foreign savings-growth link. But financial integration also led to a buildup of vulnerabilities and now exposes emerging Europe to prolonged uncertainty and financial deleveraging due to eurozone developments. Nonetheless, we believe that external imbalances should not be eradicated—nor should emerging Europe pursue a policy of self-insurance. Instead, what we refer to as an acyclical fiscal policy stance could serve to counterbalance private sector behavior. Going forward, a more proactive macroprudential policy will also be needed to limit financial system vulnerabilities when external imbalances are large.
This paper build on work presented in a World Bank report titled “Golden Growth: Restoring the Lustre of the European Economic Model” (2012) and on Juan Zalduendo’s presentation on “Financial integration. Lessons from CEE and SEE” delivered at the CASE 2011 International Conference on “Europe 2020: Exploring the Future of European Integration” held in Falenty near Warsaw, November 18-19, 2011.
Authored by: Aleksandra Iwulska, Naotaka Sugawara, Juan Zalduendo
Published in 2012
Currently pi network is not tradable on binance or any other exchange because we are still in the enclosed mainnet.
Right now the only way to sell pi coins is by trading with a verified merchant.
What is a pi merchant?
A pi merchant is someone verified by pi network team and allowed to barter pi coins for goods and services.
Since pi network is not doing any pre-sale The only way exchanges like binance/huobi or crypto whales can get pi is by buying from miners. And a merchant stands in between the exchanges and the miners.
I will leave the telegram contact of my personal pi merchant. I and my friends has traded more than 6000pi coins successfully
Tele-gram
@Pi_vendor_247
when will pi network coin be available on crypto exchange.DOT TECH
There is no set date for when Pi coins will enter the market.
However, the developers are working hard to get them released as soon as possible.
Once they are available, users will be able to exchange other cryptocurrencies for Pi coins on designated exchanges.
But for now the only way to sell your pi coins is through verified pi vendor.
Here is the telegram contact of my personal pi vendor
@Pi_vendor_247
Exploring Abhay Bhutada’s Views After Poonawalla Fincorp’s Collaboration With...beulahfernandes8
The financial landscape in India has witnessed a significant development with the recent collaboration between Poonawalla Fincorp and IndusInd Bank.
The launch of the co-branded credit card, the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card, marks a major milestone for both entities.
This strategic move aims to redefine and elevate the banking experience for customers.
what is the future of Pi Network currency.DOT TECH
The future of the Pi cryptocurrency is uncertain, and its success will depend on several factors. Pi is a relatively new cryptocurrency that aims to be user-friendly and accessible to a wide audience. Here are a few key considerations for its future:
Message: @Pi_vendor_247 on telegram if u want to sell PI COINS.
1. Mainnet Launch: As of my last knowledge update in January 2022, Pi was still in the testnet phase. Its success will depend on a successful transition to a mainnet, where actual transactions can take place.
2. User Adoption: Pi's success will be closely tied to user adoption. The more users who join the network and actively participate, the stronger the ecosystem can become.
3. Utility and Use Cases: For a cryptocurrency to thrive, it must offer utility and practical use cases. The Pi team has talked about various applications, including peer-to-peer transactions, smart contracts, and more. The development and implementation of these features will be essential.
4. Regulatory Environment: The regulatory environment for cryptocurrencies is evolving globally. How Pi navigates and complies with regulations in various jurisdictions will significantly impact its future.
5. Technology Development: The Pi network must continue to develop and improve its technology, security, and scalability to compete with established cryptocurrencies.
6. Community Engagement: The Pi community plays a critical role in its future. Engaged users can help build trust and grow the network.
7. Monetization and Sustainability: The Pi team's monetization strategy, such as fees, partnerships, or other revenue sources, will affect its long-term sustainability.
It's essential to approach Pi or any new cryptocurrency with caution and conduct due diligence. Cryptocurrency investments involve risks, and potential rewards can be uncertain. The success and future of Pi will depend on the collective efforts of its team, community, and the broader cryptocurrency market dynamics. It's advisable to stay updated on Pi's development and follow any updates from the official Pi Network website or announcements from the team.
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
Guaranteed Loan Program: The USDA guarantees a portion of the loan, reducing risk for lenders and expanding borrowing options.
Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
Pre-Qualification: Determine your eligibility and the amount you can borrow.
Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
Processing and Approval: The lender and USDA will review your application. If approved, you can proceed to closing.
USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
how can i use my minded pi coins I need some funds.DOT TECH
If you are interested in selling your pi coins, i have a verified pi merchant, who buys pi coins and resell them to exchanges looking forward to hold till mainnet launch.
Because the core team has announced that pi network will not be doing any pre-sale. The only way exchanges like huobi, bitmart and hotbit can get pi is by buying from miners.
Now a merchant stands in between these exchanges and the miners. As a link to make transactions smooth. Because right now in the enclosed mainnet you can't sell pi coins your self. You need the help of a merchant,
i will leave the telegram contact of my personal pi merchant below. 👇 I and my friends has traded more than 3000pi coins with him successfully.
@Pi_vendor_247
The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
where can I find a legit pi merchant onlineDOT TECH
Yes. This is very easy what you need is a recommendation from someone who has successfully traded pi coins before with a merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi network coins and resell them to Investors looking forward to hold thousands of pi coins before the open mainnet.
I will leave the telegram contact of my personal pi merchant to trade with
@Pi_vendor_247
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
Tele gram: @Pi_vendor_247
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
BYD SWOT Analysis and In-Depth Insights 2024.pptxmikemetalprod
Indepth analysis of the BYD 2024
BYD (Build Your Dreams) is a Chinese automaker and battery manufacturer that has snowballed over the past two decades to become a significant player in electric vehicles and global clean energy technology.
This SWOT analysis examines BYD's strengths, weaknesses, opportunities, and threats as it competes in the fast-changing automotive and energy storage industries.
Founded in 1995 and headquartered in Shenzhen, BYD started as a battery company before expanding into automobiles in the early 2000s.
Initially manufacturing gasoline-powered vehicles, BYD focused on plug-in hybrid and fully electric vehicles, leveraging its expertise in battery technology.
Today, BYD is the world’s largest electric vehicle manufacturer, delivering over 1.2 million electric cars globally. The company also produces electric buses, trucks, forklifts, and rail transit.
On the energy side, BYD is a major supplier of rechargeable batteries for cell phones, laptops, electric vehicles, and energy storage systems.
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
Empowering the Unbanked: The Vital Role of NBFCs in Promoting Financial Inclu...Vighnesh Shashtri
In India, financial inclusion remains a critical challenge, with a significant portion of the population still unbanked. Non-Banking Financial Companies (NBFCs) have emerged as key players in bridging this gap by providing financial services to those often overlooked by traditional banking institutions. This article delves into how NBFCs are fostering financial inclusion and empowering the unbanked.
1. “Don’t Waste a Perfectly Good Crisis”
13th Annual CEE Private Equity Forum
Event Summary by Squire, Sanders & Dempsey L.L.P.
Spring 2009
2. INTRODUCTION
The global downturn has caught up with Central and Eastern Europe and then some. The
transactional scene in CEE is pin-drop quiet, LPs are spooked and several CEE stalwarts are
wrestling with political and economic turmoil.
In short, it is an opportunity in the making for private equity. As put by Daniel Lynch of 3TS Capital
Partners, “don’t waste a perfectly good crisis.”
C5 and global law firm Squire, Sanders & Dempsey L.L.P. are pleased to bring you an overview of
perspectives and insights from the 13th Annual C5 CEE Private Equity Forum held in Vienna on 23-24
March 2009. We would like to thank all presenters for their thoughtful comments on the current state
of private equity in Central and Eastern Europe, and the Forum delegates for demonstrating
continuing interest in private equity’s future.
Squire Sanders’ CEE Private Equity Team
Spring 2009
13th Annual CEE Private Equity Forum Event Summary 2
3. C5 CEE PRIVATE EQUITY FORUM: EXPLORING OPPORTUNITIES IN UNCERTAIN TIMES
Private equity in Central and Eastern Europe is bearing its share of fallout from the global downturn.
Deal flow isn't even at a trickle, governments and economies are in turmoil and businesses are
collapsing, not to mention the overarching anxiety caused by the ongoing financial crisis. But amid the
gloom spark some new prospects for private equity.
• There has never been a one-size-fits-all solution for private equity in CEE. The financial crisis
has highlighted regional winners and losers, although debate continues on final designations.
Some conference presenters named the Czech Republic, Poland, the Slovak Republic and
Slovenia as winners, while the Baltic states, Bulgaria, Hungary, Romania, Russia and Ukraine
were generally named losers. Hobbled by higher debt and unstable currencies, the losers are
expected to be slower to recover. In any case, private equity must have players on the ground
who understand each country’s economic, social and political fundamentals before selecting
investment targets.
• Crisis notwithstanding, private equity firms are believed to be sitting on US$3 billion to US$4
billion of dry powder, and supply and demand for regional capital is bound to converge. While
many observers urged private equity to go back to basics and get this capital into play, others
noted that the industry needs to obtain clarity from banks about the availability of leverage or
come up with financing alternatives.
• Fund managers need to evaluate the relative strength of existing portfolio companies with a
view to managing towards increased efficiency and, as concerns non-performing or troubled
assets, developing a realistic plan to address these problems.
• Highly leveraged mega-buyouts may be a dead model, so private equity needs to be creative
and flexible. At the same time, private equity has to play it safe and smart, increasing
diligence efforts, forcing valuations to match market realities and forecasting realistic exit
opportunities.
• Private equity should be on the lookout for distressed assets, mezzanine finance
opportunities, small deals in the €10-25 million range and family-owned companies with
succession issues. The industry should also beware of potential difficulties caused by the call
for increased governmental regulation.
13th Annual CEE Private Equity Forum Event Summary 3
4. WHAT THE EXPERTS SAID
Winners and Losers
While the “easy money” years (2004-2008) are gone, Nikolaus Bethlen of Mid Europa Partners
observed that talk of gloom and doom in CEE doesn’t provide a complete picture. A more accurate
view of CEE would focus on regional winners and losers instead of a unified region of equals. As a
result, private equity needs to develop distinct strategies for each CEE country.
Although debate continues on final designations, the winners were identified as Poland, the Slovak
Republic, Slovenia and the Czech Republic. Jaroslav Hascak of Penta Investments is “very
optimistic” about investing in CEE and believes that, on a macro level, the so-called winner countries
will provide good opportunities for private equity.
The so-called losers – those countries with unstable currencies and high rates of debt to GDP – were
generally identified as Russia, Ukraine, the Baltic states, Hungary, Romania and Bulgaria. These
countries are predicted to have a difficult time luring new investors. Mr. Bethlen noted that the losers
have taken a double capital flight hit: as investors became more wary, banks also expatriated money
from the region. Russia and Ukraine are particularly hard hit, he said.
Michael Tojner of Global Equity Partners Beteiligungs-Management AG echoed that perspective,
noting several short-term challenges that the region faces. He said he is very wary of investments in
Eastern Europe, particularly Russia, where financing is hard to come by. Mid Europa’s Bethlen noted
that while, for example, Hungary- or Ukraine-based deals will be hampered by financing difficulties,
there are significant opportunities for managers who have been in and understand the region. He also
stated there is at least US$3 billion to US$4 billion in dry powder awaiting investment opportunities in
CEE that will surface as valuation levels align with expectations. As a result, private equity activity
should pick up by late 2009.
From the investors’ perspective, Roy Baumann of Partners Group said that his firm is earmarking
5 to 10 percent of its European program to CEE investments, but that he is much more cautious about
Russia and Ukraine. Thorsten Paul of Investkredit Bank AG predicts that Russia will be the last
CEE country to find new investors, as he believes the bubble in Russia is bigger than in any of the
other CEE countries. He added that he does not see a lot of fundraising activity in the region and
observed that the funds his firm has invested in are sitting on cash. Paul does not expect a big
shakeout in the market, although he does predict that the number of LPs investing in CEE will
decrease over the next couple of years. Henry J. Owainati and Hannes Ambacher of Bank
Gutmann Group explained the importance of choosing the right private equity fund manager, due
primarily to the great disparity in performance between the top-tier fund managers and bottom-tier
fund managers. Owainati and Ambacher suggested that the most important factor an investor should
consider is the management team.
13th Annual CEE Private Equity Forum Event Summary 4
5. Global Equity Partners’ Tojner also sees opportunities in CEE, specifically real estate funds and
restructuring funds targeting real estate assets. Tojner also said the niche market of high-tech
companies – his organization’s target – presents excellent opportunities as valuations come down.
Likewise, Vinarom Vilaihongs of SGAM Alternative Investments S.A., comparing CEE to Western
Europe, sees opportunities arising from the fact that CEE is a very fragmented market with less
competition. Jan Dewijngaert of Gimv, in contrast to many other speakers, found positives in the
Russian market. While the macroeconomic indicators are certainly not good, because of low
governmental debt, high foreign currency reserves and relatively modest unemployment, he believes
Russia’s current troubles are different from the 1998 Russian crisis. Dewijngaert also predicts that the
power of the oligarchs will decline as they are forced to restructure, consolidate or sell assets. He
continues to see many interesting investment opportunities, particularly in consumer-oriented
businesses.
Private Equity Landscape: Where Are We Now?
Country-by-country winners and losers notwithstanding, the speakers provided a frank assessment of
the state of private equity in CEE in 2008 and early 2009, including analyzing the roots of its current
troubles.
Armando D’Amico of Acanthus Advisors attributed CEE’s problems to “too much investment, too
quickly.” In that vein, Joanna James of Advent International cautioned that private equity in CEE
had become accustomed to “instant gratification.” She stated that the industry as a whole must
relearn that “debt is a burden to be paid off” and not an asset to be bought and sold. EIF’s Ulrich
Grabenwarter stated that a review of deal dynamics over the past three years provided “warning
signs” of the current crisis. He noted that the impact of the crisis will be larger in CEE than in Western
markets because there will be a “flight to the more conservative risk/return profiles” typically found in
more developed markets.
David Bernard of Thomson Reuters provided grim statistics for 2008 and 2009: M&A activity in
2008 was down 35 percent in Europe and 45 percent in CEE. Worse yet, Bernard noted that M&A
activity is down 98 percent in 2009, demonstrating how few deals have been reported during the first
quarter of this year. He indicated that no sector is safe, as all industries have been affected while PE-
backed buy-side transactions decreased 93 percent over the past six months. There have been no
syndicated loans this year and fundraising is also very quiet. At the same time, the exit market is
suffering, with equity issuances down 29 percent in CEE and 17 percent globally. According to Mr.
Bernard, the capital markets are “closed, for all intents and purposes.”
Mid Europa’s Bethlen observed that now is the time to focus on portfolio companies and to
contemplate strategies for investing amid a lack of acquisition financing. “We are still in a time lag,”
remarked Bethlen, predicting that it may take a few more months for people to realize that the new
valuations are here to stay. He advised being creative and opportunistic to achieve results. Brian
Gimotty of Paul Capital Partners agreed that there is “a lot of disconnect in the market.” He believes
that secondary valuations have started to “come down to earth” and that private equity firms are
taking a more sober view of risk/reward scenarios.
13th Annual CEE Private Equity Forum Event Summary 5
6. A number of speakers expressed concern that investment capital has been flowing out of CEE and is
not being replaced by new investors. At the same time, Robert Manz of Enterprise Investors
expressed “strong concern” that investments in CEE have fallen out of favor, with investors not
currently in CEE fearful of committing to the region. Though Alessandra Pasian of the European
Bank for Reconstruction and Development confirmed that EBRD is committed to continue funding
in CEE and is looking at new funds coming to market, Peeter Piho of Hansa Investment Funds,
observed a lack of domestic institutional LPs, which is “an issue in CEE and an issue for the industry.”
Compounding the problem of capital flight is the lack of clarity from banks about their ability and
willingness to lend. Thomas Wilfling of AXA Private Equity Eastern Europe GmbH believes that a
number of banks claiming to be open for business are, in fact, “not really open” or have not seriously
tested their credit committees for some time, lacking internal guidance in terms of what can be
achieved. He predicts that the lending situation may become somewhat clearer in a few months when
banks know and have digested 2008 data. Supriya Saxena of UniCredit Markets & Investment
Banking acknowledged that many banks do not have a defined lending strategy yet for this year,
thereby contributing to the lack of visibility around liquidity. That said, she emphasized that banks are
more critically assessing risk and there is generally more focus on due diligence. Given overall
constraints on capital, and volatility in funding costs, banks are requiring higher up-front fees and
margins to put money to work. Many banks have retreated to their home markets, and relationship
and ancillary business has become increasingly important in the overall investment decision. Saxena
said that in addition to liquidity provided by local lenders in each regional market, there is a very
limited number of global banks still actively involved in LBOs in CEE. Some of the main players
include UniCredit, ING and RZB. The model where arranging banks underwrite and syndicate is no
longer viable, she observed. In 2009, most transactions are likely to be in the form of club deals, with
three or four banks working together to provide financing without any one lender assuming a
significant amount of underwriting risk.
Bad news notwithstanding, conference presenters also expressed optimism about the prospects of
private equity in CEE.
Bethlen of Mid Europa claimed that the “portrait of doom and gloom” painted in the media about CEE
is exaggerated. Comparing the current environment to Asia’s crisis in 1996, he observed that CEE is
in a much better state of health because debt levels of CEE companies are fairly moderate. As a
result, he forecasts the crisis “will be much better absorbed” in CEE than it was in Asia. Penta
Investments’ Hascak reminded the audience that while you must be selective, there are “excellent
opportunities” to find interesting companies at a good price. EIF’s Grabenwarter stated that the crisis
can also be seen as a “tremendous opportunity for private equity” as it can demonstrate its real role in
company building and strategic development of businesses. He added that those fund managers that
prove they are capable of generating returns not only in times of “macroeconomic tailwind” will prevail.
Another prominent theme was the role that mezzanine finance will play in private equity deals in 2009
and beyond. Chris Buckle of Mezzanine Management GmbH observed that deal flow is beginning
to improve compared to the past six to nine months. New deals include LBOs of distressed sellers.
Buckle noted that distressed LBOs offer a significant role for mezzanine finance firms. Another
speaker noted that returns are less squeezed than before the crisis and that deals are now being
more conservatively leveraged.
13th Annual CEE Private Equity Forum Event Summary 6
7. From the perspective of local mezzanine providers, Mezzanine Management’s Buckle also noted that
the downturn has reduced competition for deals. In particular, many Western European funds are now
staying in their home markets and no longer straying into CEE. A less competitive landscape is good
news for local players. However, with LPs also shunning the region, specialist mezzanine funds in
CEE now face the challenge of raising enough capital to finance the significant number of available
opportunities anticipated. This view was echoed by Dr. Matthias Unser of Sal. Oppenheim Private
Equity Partners.
Advent’s James drew parallels between the tortoise-and-hare fable and private equity’s leverage-
fueled growth. She said the industry must “redefine success” in order to manage expectations created
by the unsustainable returns achieved during the boom years. Since private equity is flexible and
creative, James said she has faith the industry will adapt to a new landscape that demands private
equity to be cautious, methodical and to truly take a long-term view. In addition to her advice to “get
back to basics,” James predicted that, in the near term, funds would target smaller companies holding
not more debt than they can pay off, and that expansion capital investments, as compared to
leveraged buyouts, will become increasingly common. EIF’s Grabenwarter agreed that private equity
will see new deal dynamics going forward, with leverage as a value driver off the agenda and private
equity going “back to its roots, which is value creation through strategic positioning and organic
growth.”
Manz of Enterprise Investors also expressed optimism about the future of private equity in CEE.
“Private equity thrives on distortion,” he said, predicting that private equity’s current crunch will be
relieved by decreases in both valuations and competition and bolstered by improved access to
talented management. Manz expects valuations to come down to more acceptable levels within six to
12 months.
Finally, participants highlighted current regulatory trends and those on the horizon.
Maurits Tausk of Baker & McKenzie advised that the new EU proposal to regulate private equity
firms should be monitored closely. Advent’s James echoed this concern, noting that there is virtually
no chance that the private equity industry will be allowed to self-regulate. Observing that there are no
CEE representatives on the regulation task force, she expressed concern about the current talk of
delegating oversight responsibility to local authorities or venture capital associations.
Marc van Campen of Baker & McKenzie noted the recent attacks by the United States on tax haven
jurisdictions and predicted that we are likely to see changes that affect private equity structuring, not
all of which may be rational.
Trends to Watch
In the short term, Mezzanine Management’s Buckle sees many private equity funds focusing on
portfolio companies while considering smaller acquisition opportunities in the US$10 million to US$25
million range. That view was echoed by Lynch of 3TS, who noted that now is the right time to make
any changes that need to be made to portfolio companies. Lynch also advised looking at
consolidation and “bolt on” opportunities. Buckle does not envision many larger LBOs. UniCredit’s
13th Annual CEE Private Equity Forum Event Summary 7
8. Saxena indicated that her bank remains committed to investing in LBOs in the region. The appetite for
commitment to any particular transaction depends upon a number of factors, but institutionally the
bank’s focus is on home markets and key sponsor relationships.
AXA’s Wilfling predicted that future acquisition financing packages will see significant changes from
deals structured just a year or two ago. For example, he does not expect to see many deals with
much more than five times EBITDA debt multiples in the near term. Observing that “cooling off is a
good thing,” Wilfling said that the current environment will force private equity to find creative ways to
deal with the lack of debt and emphasized that private equity needs to be highly selective in these
times. Brian Wardrop of ARX Equity Partners envisions a greater role for mezzanine finance due to
banks’ changed incentive models.
Johan Bastin of Darby Private Equity sees local banks still willing to provide senior debt, although
they are considerably more selective and focused on defensive factors. With respect to the post-crisis
leverage ratios, Bastin said, “In 2007 six became the new five and now four is becoming the new six.”
Additionally, covenants have come back in fashion and equity kickers are no longer anathema. Bastin
stated that he is much more interested in credit quality these days, “even at the cost of lower returns
than could be realized elsewhere in the market.”
Other speakers highlighted developments in the region that may result in new investment
opportunities. According to Penta Investment’s Hascak, many family companies purchased out of
privatizations are facing succession issues. He observed that private equity houses with local offices
and knowledge can exploit the opportunities created by these changes.
Anticipating increased interest from private equity in distressed investments, a panel of experts from
Squire Sanders emphasized the importance of conducting speedy due diligence of financially
troubled companies. “Review the metrics of the business and do not get hung up on minutiae as time
is of the essence”, advised Squire Sanders partner Kevin T. Connor. As bankruptcy financing options
are extremely limited in CEE, the panel advised that acquiring a target prior to entering into formal
insolvency proceedings is “critical.” Additionally, acquirers of distressed companies should restrain
themselves from bidding high early in the process. Squire Sanders partner Tomasz Z. Ujejski
recommended reserving sufficient resources to outbid any later bidders that directors may seek to
include in order to satisfy directors’ duties to maximize share price.
Discussing exits, Manz of Enterprise Investors does not expect conditions to improve substantially
until 2010.
“We're living in unprecedented times, which means there are no definitive answers on how private
equity will fare in the economic landscape being reshaped by the global financial crisis,” concluded
Squire Sanders’ Kevin Connor, chairman of day one of the Forum. “But we do know that private equity
thrives when the stakes are high and the odds are long. Our best practice now is to explore all
opportunities and make the most of them.”
13th Annual CEE Private Equity Forum Event Summary 8
9. WHAT THE NUMBERS SAY
Below is a sampling of the statistics that were shared by the speakers in their presentations. Thank
you to David Bernard of Thomson Reuters, Nikolaus Bethlen of Mid Europa Partners, Henry J.
Owainati and Hannes Ambacher of Bank Gutmann Group, Joanna James of Advent International and
Brian Gimotty of Paul Capital Partners for permitting us to include these in our event summary.
13th Annual CEE Private Equity Forum Event Summary 9
12. About Squire Sanders
Founded in 1890, Squire, Sanders & Dempsey L.L.P. has lawyers in 32 offices and 15 countries around the world.
On the ground in seven CEE countries, and backed by the global expertise of our Emerging Markets Private Equity Group, our tightly integrated
CEE Private Equity Team works together to seamlessly serve our clients’ transactional needs – whether the deal is undertaken in one of our resident
countries or across multiple borders.
We advise on all types of private equity investments and exits and have a deep understanding of the issues peculiar to key industry sectors including
chemicals, communications, energy, food and beverage, financial services, hospitality and leisure, logistics and infrastructure, media, natural
resources, real estate and technology.
For more information, please contact our CEE Private Equity Team:
Christopher A. Rose
Moscow +7.495.258.5250 | London +44.20.7189.8113 | crose@ssd.com
Kevin T. Connor
Bratislava +421.2.5930.3473 | Budapest +36.1.428.7115 | kconnor@ssd.com
Tomasz Z. H. Ujejski
Warsaw +48.22.395.5507 | London +44.20.7189.8130 | tujejski@ssd.com
Ákos Mester
Budapest +36.1.428.7168 | amester@ssd.com
Jeffrey A. McGehee
Prague +420.221.662.282 | jmcgehee@ssd.com
Peter Z. Teluk
About C5
Kyiv +380.44.220.1400 | pteluk@ssd.com
For over 15 years, conferences produced by C5 have provided
the business intelligence that corporate decision-makers need to
respond to modern challenges and opportunities. C5 is staffed by
industry professionals, lawyers and CIS country specialists. The
company operates as a think tank by monitoring trends and
developments in major industry sectors with a view to provide
cutting edge business information. Based in London, C5 holds
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produce over 90 events a year, attended by hundreds of
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