Avallon has created a new Fund - AVALLON MBO II for joint investments with managers
Avallon, a company managing private equity funds, based in Lodz, has created new fund - Avallon MBO II.
The investment fund will be focused on transactions carried out jointly with managers, as its predecessor. It will primarily involve the purchase of shares in the case of sale by current owners or investment in private companies managed by their founders. Avallon has over a decade of experience in this area and has participated in nearly 100 transactions together with managers and is a pioneer in the management buyout market in Poland.
The new fund has a current size of nearly 250 million zlotys (€ 60m), and during 2013 it is planned to increase to nearly 440 million zlotys (€ 107m). Investors in the Fund are international financial institutions including the European Bank for Reconstruction and Development and funds managed by the Swiss Fund of Funds -Akina Partners.
Avallon has also invested more than 16 million zlotys (€ 4m) of its own in the new Fund. A unique opportunity for managers is also planned so that they can invest in the Fund together with the management company. This will strengthen the relationship of the most active managers, from a pool of nearly 2000 people in contact with Avallon. The Fund will invest primarily in companies with a turnover of between 15 and 60 million euro. Investments will be made in a variety of industries, including FMCG and manufacturing companies.
The average size of an investment is between 7,5 - 10 million euro , but through a co-investment agreement with investors in the Fund and financial partners, the Fund will be able to achieve much larger transactions. The main determinant in any investment is the quality of management and the concept of boosting the value of a company. Avallon looks at companies who are leaders in their industries. The Fund is managed by a team of Polish experts, with years of experience, who retain influence on investment decisions.
Tomasz Stamirowski, Managing Partner Avallon
We have been building Avallon for many years, based on accepted values such as partnerships with managers, commitment and professionalism. We have steadily expanded both our experience as well as contacts database. Investors' decisions to engage in our new Fund are the best form of showing confidence in our chosen strategy.
Michał Zawisza, Partner Avallon
By investing our own resources in the Fund shows that we firmly believe that the current difficult economic environment creates good opportunities for long-term investors. We see a growing group of private business owners looking for an investor profile that represents Avallon.
Piotr Miller, Partner Avallon
Our achievements to date mean that the investors who entrusted us with resources In 2007 have decided to re-invest in the next Fund managed by us. In addition, we have acquired new investors interested in involvement in Poland. Unfortunately, due to structural reasons, domestic financial institutions have difficulties with investments in mutual funds such as ours. The fund comes mainly from foreign institutional investors._
Robert Więcławski, Partner Avallon
Those companies in which we invest receive not only capital, but also our team’s diverse experience, knowledge and strategic skills. In this way, we add our existing value of the company's own value. We believe that both the managers at the companies in which we invest and our also partners who have entrusted us with the capital in the new Fund appreciate this fact.
The last Fund: Avallon MBO FUND I - Investment
Avallon MBO FUND I with a capitalization of €50m, allocated its resources to: Orthopaedic Company MEDORT S.A. Lodz (2007) - the market leader in rehabilitation and orthopaedics; Fiten S.A. (2008) engaged in wholesale electricity trading and investment in the production of renewable energy (biomass); GOOD FOOD S.A. (2009)-one of the leading manufacturers and distributors of rice wafers; ORGANIC FARM HEALTH S.A. (2010) – a leader in the organic market and organic food; AG Foods in the Czech Republic (2011) - soluble beverage market leader in the Czech Republic, Poland and Hungary; EKO VIMAR Orlański Sp. z o.o. (2011) manufacturer of modern, eco-pellet boilers; Limito S.A. (2011) processor and distributor of fish and seafood; and CEKO Sp. z o.o. (2012) - a manufacturer of high quality cheeses.