There is still capital for good companies and assets in the region. But the definition will change.
There is still capital for good companies and assets in the region. But what will change is the definition of a good asset, and therefore, the number of deals will probably decline.
Funds are liquid and need to invest their capital, so despite the slowdown, we cannot expect a ‘financial winter’ like in 2008
The total GDP of the countries we operate in - Slovenia, Croatia, Bulgaria, Romania, and Serbia is around EUR 400 billion. The total funds in private equity are around EUR 0.5 - 1 billion, which is very small and is yet to see convergence to CEE/Western European levels
BlackPeak aims to close 3-4 deals next year with a clear focus on buy-and-build investments. A few things set us apart from our competitors:
-In our segment of deals of above EUR 10 million, most funds prefer to invest in majority stakes. Entrepreneurs who still see significant potential for growth prefer not to give away majority at this stage. This makes our proposition for minority growth equity very attractive
-We provide hands-on support to investees to acquire competitors and grow inorganically. In some of our deals, the founders don’t need money as much as they needed the support we give them to grow via acquisitions
-We support our investees in their regional and pan-European expansion plans through our extensive network of contacts.
Find the full interview below. Thank you for the invitation, Veronika Denizova and Bloomberg TV.