SigmaBleyzer allocates over EUR 200mn for investments in Romania, Ukraine and Bulgaria

Mediafax news agency, by Cristina Cuncea

SigmaBleyzer has launched a new private equity fund, which targets buyout opportunities in Ukraine, Romania and Bulgaria, the capital of the investment vehicle being of EUR 51mn, the president of the US Company, Mr. Michael Bleyzer has stated. “As of the first closing the value of the fund is of EUR51mn, but our target is to attract up to EUR 200mn. If we identify good business opportunities in the region, investors could allocate up to EUR 250-300mn for the fund” Mr. Bleyzer stated.

SigmaBleyzer Southeast European Fund IV (SBF IV) is the fourth fund of the company and includes a large number of investors from the previous funds that were fully invested in Ukraine.” All three countries presents a unique triple play opportunity due to fast macroeconomic development which will drive the top line growth in successful companies; many outstanding opportunities to improve operational efficiencies resulting in bottom line growth; and also due to the planned  admission into EU” the SigmaBleyzer official stated.

The fund is targeting buyout opportunities in companies with high growth potential, but without large capital injections requirements. “We will invest between EUR 5-40mn for project, but our main objective is to buy several companies in one of the sectors of interest and consequently consolidate the respective sectors. The sectors we are considering comprise: retail, FMCG, telecommunications, food and beverage, IT and pharma” the president of the company mentioned. Between three and five investment might be done per country. “We do hope to conclude a first transaction in Romania by the end of the year. We are discussing with several companies but negotiations do take time” Mr. Bleyzer stated. Regarding the amount of money allocated on a country basis Mr. Bleyzer has stated that investment are done on an opportunistic basis, and money will be invested where there are more interesting companies . “Romanian companies and Romania should compete to attract investors. At present we are considering over 170 potential targets and we will choose the ones that are most attractive” Mr. BLeyzer continued. He also mentioned that all three countries are emerging markets where strategic investors are not yet present because companies’ development level is reduced and business environment is still unfriendly”. ”Now is the time for funds to make acquisitions in these countries. Their role is to add value in those companies, to adapt them to market conditions and then to sell them to a strategic investor. Strategic investors do not come yet because the environment level is still unstable, corruption is still high while companies are not that attractive” Mr. Bleyzer has explained. Referring to the exits from an investment, the main objective is the sale to another private equity fund not present in the region or in other cases to a strategic investors. “That is our strategy, because we think that in the next period we will witness the arrival of a number of private equity funds into the region to which we could then sell our stakes in companies”

SigmaBleyzer was founded in 1993, and in 1996 it launched its first fund. Investors in the funds managed by the company are multinational institutions, family offices together with wealthy individuals from Western Europe and US. The company has offices in US, Holland, Bulgaria, Romania and Ukraine.