Genesis Capital raises EUR 101m in first closing of GPEF IV

Katka Krosnar
26 August 2021

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Czech private equity fund Genesis Capital has raised EUR 101m in the first close of Genesis Private Equity Fund IV (GPEF IV), its sixth fund, managing partner Ondrej Vicar told Unquote.

The fund aims to raise a total of up to EUR 150m from institutional investors by year end, he said.

The vehicle was launched in June 2020, according to Unquote Data.

GPEF IV will invest in companies with strong growth potential in the Czech Republic, Slovakia, Poland, Hungary and Austria, Vicar said.

The fund is currently looking at more than 10 targets across the region and expects to make up to two acquisitions this year, he said.

Investors
Institutional investors in the new fund include the European Investment Fund (EIF), Ceska sporitelna, two insurance companies within the Vienna Insurance Group, Amundi Czech Republic, Raiffeisen Investment Company and Alpha Associates.

Investments
The typical ticket size for the new fund is larger than previous funds and will be in the EUR 5m-EUR 20m range, Vicar said. Previously the ticket size was EUR 4m-EUR 10m, he said.

The new fund will also allocate more into investments outside the Czech Republic – up to 30% compared to up to 20% previously, he said.

The fund will target companies in B2B services, light and medium manufacturing, IT services, specialised retailing and consumer-oriented services.

It will acquire both majority stakes and minority stakes, he said. Genesis Capital sees a very strong pipeline across the region, Vicar said. The COVID-19 pandemic has accelerated the move by company owners to seek investors, either for an exit or to obtain growth capital, he said.

Genesis' current portfolio includes Czech companies GTH Multicatering, Quinta-Analytica, HP Tronic and Stangl Technik Holding, Hungarian company 11 Entertainment Group and Polish-based Summa Linguae Technologies.

People
Genesis Capital – Ondrej Vicar (managing partner).