Home»Our Business

As we gained investment experience in the region, we realized that investing in emerging markets, especially in the difficult environment of Ukraine, demands a more active hands-on investment style than that generally practiced by Western private equity funds. We understand that due to the often undeveloped company organization and infrastructure, a direct hands-on focus on all aspects of operational excellence is the best way to add real value to portfolio companies. We have since developed a unique approach to private equity investments in emerging markets that has been proven by its success in managing funds in Ukraine, one of the more difficult investment environments in southeast Europe.

 

OUR ORGANIZATION. Our greatest strength is our organization. Today, our teams work closely together to apply their expertise to every investment in the portfolio. We utilize local talent extensively to work on deal sourcing, implementing and negotiating transactions, and managing portfolio companies. We believe that local experience and expertise is key to unlocking value through every stage of the investment process. Other funds run by Western managers tend to manage their portfolios from afar, adding significant risk of failure to their investments. Our local employees include industry leaders with decades of experience in their field and younger staff trained in Western MBA programs and methodologies. Western expatriates comprise about 10% of staff and are used throughout the due diligence and post-investment phases to add value operationally and strategically and to educate local staff. Each expatriate has had extensive experience in the region since the early 1990s. 

 

 

ACTIVE MANAGEMENT OF PORTFOLIO COMPANIES. Our extensive infrastructure and personnel in Bulgaria, Romania, Ukraine, and the United States, allows us to add substantial value at the operational level. This is accomplished by proactively representing the funds at the Board of Directors; working closely with existing management (or replacing management); working on marketing, accounting, and legal issues; promoting the companies in markets abroad; and participating in strategic planning, financial control, restructuring, and business development.

Unlike their Western counterparts, companies in Eastern Europe tend to be inefficiently run. Such inefficiencies manifest themselves through the inadequate use of production inputs and other physical resources; the mismanagement of human resources; the inefficient or illegal use of cash and other financing; a dearth of modern management, marketing and sales techniques; a weak understanding of competitive forces; or the overall inability to navigate in a new market economy environment. Significant involvement by our investment and industry professionals in every facet of the company’s business is a key component to our success. 

 

INVESTMENT DECISIONS. Investment decisions are made by an investment committee comprised of the most experienced investment professionals and outside industry experts based on the extensive research and due diligence conducted by the entire SigmaBleyzer team. The decisions are made on a consensus basis after extensive discussions, reviews, company visits and presentations.

 

THE BLEYZER FOUNDATION. We specifically seek to develop and maintain close relationships with government officials and the entire political spectrum at the highest level in each of its countries of operations. We have gained substantial knowledge and expertise in transition economies through The Bleyzer Foundation (established in 1999). The Foundation has conducted benchmarking and statistical analysis work for 128 developing countries and transition economies—knowledge which has since been used to develop an economic policy framework for transition economies. Such research provides a springboard from which we approach the governments of the countries in which we operate. By offering these governments an accelerated path to a successful market economy, we strengthen relationships with the country and governments, prove our commitment to the region which cultivates goodwill, and help to strengthen the institutions and legal environment needed to guarantee the success of the funds’ investments. Business and political leaders realize that we are not only in their country to make money, but is there to stay for the long-term, creating real value for every citizen.

The information provided by the Foundation is free to anyone over the Internet, as well as provided to banks, IFIs, and governments of the countries in which SigmaBleyzer invests.