BlackPeak Capital on Regional Expansion: How regional PE funds enable greater impact?
In the second episode, Virgil Chitu, Romania Lead, Mateo Zokalj, Senior Investment Associate, and Rossen Ivanov, Managing Partner at BlackPeak Capital, explore how regional private equity funds enable companies to achieve greater impact.
Part of our value proposition is that we are a regional fund, in contrast to those exclusively oriented towards a single country or global markets. The countries within the South and Eastern European region share a common history and possess closely aligned economic environments. So that means that by applying this regional lens BlackPeak can take solutions that apply in one geography and roll them out across the countries in the region and thereby help companies grow faster.
Often best practices that work in one country in the region can be adapted to another.
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Unfortunately, these countries are depopulating, and this is something that companies in the region will need to find ways to work with. Opting for a regional deployment strategy, rather than focusing on a single nation within this context, can offer a viable path for enterprises to achieve the necessary critical mass and attain scalability. This approach paves the way for future expansion opportunities beyond the confines of the immediate region as well.
BlackPeak Capital is supporting its portfolio companies in their regional expansion in multiple ways.
1) One of them is organic growth whereby we help our investee companies in expanding their capacity and or expanding their client base.
2) The second involves inorganic growth, where we support them to identify, execute, and successfully integrate strategic add-on acquisitions.
3) We are additionally contributing to the economic ecosystem by bolstering employment opportunities in the most promising industries. In doing so, we propagate a ripple effect throughout the economy, elevating the overall standards. We impart our knowledge and best-in-class standards in areas such as financial reporting, planning, and ESG (Environmental, Social, and Governance) strategy. These elements are of paramount importance in the contemporary business landscape, as they serve to mitigate potential future risks in these critical domains.
Our long-term vision is to be the leading alternative asset manager in the region. We want to build globally recognized companies out of the region based on innovation and some unique competitive advantages.
In this manner, we position the region as a hub for globally competitive founders, which is at the heart of our mission and what truly excites us. We aim to elevate the region's profile among major international limited partners who invest in funds like ours. We believe the region remains underappreciated, and we aspire to be the catalyst for change, demonstrating that profitable investments in private equity can be realized within the region.
Stay tuned for the next episodes and join us as we unravel the principles that underpin Growth Equity's success, and gain insights into its pivotal role in shaping the future of investments.