- Top Private Equity Firms Czech Republic -

Welcome to the Rainmakrr Top Private Equity Firms Czech Republic 2023 Guide.

Top Private Equity Firms Czech Republic

Top Private Equity Firms Czech Republic: A Comprehensive Overview

Private equity firms in the Czech Republic have been gaining attention in recent years due to their successful investment strategies. These firms are known for investing in companies that have the potential for growth and profitability, and they work closely with management teams to achieve their goals.

Some of the top private equity firms in the Czech Republic include Benson Oak Capital, Penta Investments, and Rockaway Capital. These firms have a track record of investing in a wide range of industries, from technology to healthcare to consumer goods. They typically invest in companies that are already established and have a proven track record of success, but they also look for opportunities to invest in early-stage companies that have high growth potential.

Private equity firms in the Czech Republic have been able to achieve success by leveraging their knowledge of the local market and their relationships with key players in various industries. They are able to identify promising investment opportunities and provide the necessary capital and expertise to help these companies grow and succeed. As a result, these firms have become an important part of the Czech Republic's economy and are likely to continue to play a significant role in the country's growth and development in the years to come.

Understanding Private Equity

Private equity is a type of investment that involves buying and selling shares in private companies. In contrast to public companies that trade on stock exchanges, private equity firms invest in companies that are not publicly traded. Private equity firms typically invest in companies that have the potential for growth or have a solid track record of profitability.

Private equity firms raise funds from investors, such as pension funds, endowments, and high net worth individuals. These funds are then used to acquire companies or make investments in existing companies. Private equity firms generally look for companies that are undervalued or underperforming and seek to improve their financial performance through a variety of means, including cost-cutting, restructuring, and strategic acquisitions.

Top Private Equity Firms Czech Republic

One of the key advantages of private equity is that it allows investors to gain exposure to a diverse range of companies that are not available through public markets. Private equity investments can also provide higher returns than traditional investments, such as stocks and bonds. However, private equity investments are generally considered to be riskier than traditional investments, as they involve investing in companies that are not publicly traded and may not have a long track record of financial performance.

Private equity firms typically generate returns for their investors through a combination of capital appreciation and dividends. Capital appreciation occurs when the value of the company increases over time, while dividends are payments made to investors based on the company's profits.

Overall, private equity is a complex and dynamic field that requires a deep understanding of finance, business strategy, and market trends. For investors looking to diversify their portfolios and potentially generate higher returns, private equity can be an attractive option. However, it is important to carefully evaluate the risks and potential rewards of private equity investments before making any decisions.

Top Czech Private Equity Firms

The Czech Republic has a growing private equity and venture capital market, with a number of for-profit companies and organizations being funded by private equity and venture capital (PE/VC) funds. Here are some of the top private equity firms in the Czech Republic:

Credo Ventures

Credo Ventures is a venture capital firm that invests in early-stage technology companies in Central and Eastern Europe. Based in Prague, the firm has invested in companies such as Kiwi.com, Rohlik.cz, and Productboard. The firm's portfolio also includes companies in the healthcare, fintech, and logistics sectors.

Nation 1 VC

Nation 1 VC is a venture capital firm that invests in early-stage companies in the Czech Republic and Slovakia. The firm's portfolio includes companies in the areas of software, digital media, and e-commerce. Nation 1 VC has invested in companies such as Rohlik.cz, Kiwi.com, and Spaceflow.

Genesis Capital

Genesis Capital is a private equity and venture capital firm that invests in small and medium-sized enterprises in the Czech Republic and Slovakia. The firm's portfolio includes companies in the areas of manufacturing, services, and consumer goods. Genesis Capital has invested in companies such as Kofola, Zoot, and Profimedia.

Benson Oak Ventures

Benson Oak Ventures is a venture capital firm that invests in early-stage technology companies in the Czech Republic, Israel, and the United States. The firm's portfolio includes companies in the areas of fintech, cybersecurity, and artificial intelligence. Benson Oak Ventures has invested in companies such as Wefox, Next Insurance, and SentinelOne.

J&T Ventures

J&T Ventures is a venture capital firm that invests in early-stage companies in the Czech Republic and Slovakia. The firm's portfolio includes companies in the areas of software, e-commerce, and healthcare. J&T Ventures has invested in companies such as Rohlik.cz, Liftago, and Cognexa.

These are just a few examples of the top private equity firms in the Czech Republic. The country's growing private equity and venture capital market is attracting more and more investors, and the future looks bright for the region's entrepreneurial ecosystem.

Investment Activities in Czech Republic

Czech Republic's private equity and venture capital market has seen a steady growth in recent years, with a rise in the number of companies receiving funding from these sources. In 2019, the number of companies funded by private equity and venture capital funds increased for the third consecutive year, indicating a growing interest in investment activities in the country.

According to Deloitte, the most active sectors for investment activities in Czech Republic are IT, healthcare, and consumer goods. The report also states that the majority of investments are made in later-stage companies, with seed and series A funding being relatively scarce.

The total funding amount raised by Czech Republic-based startups has been on the rise, with a total of $2.5B raised in funding rounds, according to Crunchbase. The most active investors in Czech Republic include Credo Ventures, Rockaway Capital, and Enern.

Top Private Equity Firms Czech Republic

Private equity and venture capital firms in Czech Republic are known for their high valuations and aggressive investment strategies, making them attractive options for startups looking to raise money. However, these firms also tend to be selective in their investments, preferring to invest in companies with a proven track record of success and a clear growth strategy.

Overall, Czech Republic's private equity and venture capital market is a promising area for investment activities, with plenty of opportunities for growth and development. As the country's startup ecosystem continues to mature, we can expect to see even more investment in the coming years.

Key People in the Industry

The private equity industry in the Czech Republic is led by a group of experienced and well-connected individuals who have a deep understanding of the local market. Here are some of the key people in the industry:

Petr Míkovec

Petr Míkovec is the Founder and Managing Partner of Enern, a leading private equity firm in the Czech Republic. With over 20 years of experience in the industry, he has successfully led several investments in the energy, infrastructure, and real estate sectors. Prior to founding Enern, he worked at PwC and Deloitte, where he advised clients on M&A transactions and fundraising.

Tomáš Čupr

Tomáš Čupr is the Managing Partner of Benson Oak Capital, a private equity firm that invests in technology companies in the Czech Republic and Israel. He has over 15 years of experience in the industry and has led several successful investments in companies such as AVG Technologies and Seznam.cz. Prior to joining Benson Oak Capital, he worked at McKinsey & Company, where he advised clients on strategy and operations.

Jana Kozak

Jana Kozak is the Managing Partner of Credo Ventures, a venture capital firm that invests in early-stage technology companies in Central and Eastern Europe. She has over 10 years of experience in the industry and has led several successful investments in companies such as Kiwi.com and Rohlik.cz. Prior to joining Credo Ventures, she worked at McKinsey & Company and Goldman Sachs, where she advised clients on strategy and M&A transactions.

Jan Tauber

Jan Tauber is the Managing Partner of Arx Equity Partners, a private equity firm that invests in small and medium-sized companies in the Czech Republic and Slovakia. He has over 15 years of experience in the industry and has led several successful investments in companies such as TES Vsetín and Jihoceské Papírny. Prior to joining Arx Equity Partners, he worked at Penta Investments and Deloitte, where he advised clients on M&A transactions and fundraising.

These individuals, along with many others in the industry, have played a key role in the growth and development of the private equity industry in the Czech Republic. Through their expertise and experience, they have helped to create a vibrant and dynamic ecosystem that is attracting increasing amounts of investment from both domestic and international investors.

Events and Associations

The Czech Republic has a vibrant private equity and venture capital market, which is reflected in the numerous events and associations in the region. These events and associations provide opportunities for networking, knowledge sharing, and deal-making.

One of the most prominent events in the region is the Central and Eastern Europe Private Equity Conference, organized by Private Equity Insights. The event brings together leading private equity professionals from the region and beyond to discuss the latest trends and opportunities in the industry. Another notable event is the Prague Private Equity Conference, organized by the Czech Private Equity and Venture Capital Association (CVCA). The event focuses on the local market and provides a platform for investors, entrepreneurs, and service providers to connect and exchange ideas.

Top Private Equity Firms Czech Republic

In addition to these events, there are several associations in the region that support the private equity and venture capital industry. The CVCA is the leading association in the Czech Republic, representing the interests of companies active in the area of private equity and venture capital. The CVCA is a member of Invest Europe, formerly known as the European Private Equity & Venture Capital Association, and works closely with other associations in the CEE region through a network of national associations united under Invest Europe.

Other non-profit organizations that support the private equity and venture capital industry in the region include the Association for Private Equity and Venture Capital in Poland (PSIK), the Hungarian Private Equity and Venture Capital Association (HVCA), and the Romanian Private Equity and Venture Capital Association (ARIES).

Overall, the events and associations in the Czech Republic and the wider CEE region provide a valuable platform for private equity and venture capital professionals to connect, learn, and do business.

Role of AI in Private Equity

Artificial Intelligence (AI) has become an increasingly important tool in the private equity industry. It has the potential to transform the way private equity firms operate and make investment decisions. AI can help firms to identify potential investment opportunities, evaluate risks, and improve portfolio management.

One way that AI is being used in private equity is through algorithmic rank. This involves using machine learning algorithms to rank potential investment opportunities based on various criteria. For example, algorithms can be used to analyse financial data, market trends, and other relevant information to identify companies that are likely to perform well in the future.

AI can also be used to improve due diligence. Private equity firms can use AI to analyse large amounts of data quickly and efficiently, which can help them to identify potential risks and opportunities. For example, AI can be used to analyse financial statements, legal documents, and other relevant information to identify potential issues that may impact an investment.

Top Private Equity Firms Czech Republic

Another area where AI can be useful in private equity is portfolio management. Private equity firms can use AI to monitor their portfolio companies and identify areas where they can improve performance. For example, AI can be used to analyse operational data, customer feedback, and other relevant information to identify areas where a company can improve efficiency or increase revenue.

Overall, AI has the potential to transform the private equity industry. It can help firms to identify potential investment opportunities, evaluate risks, and improve portfolio management. However, it is important to note that AI is not a silver bullet. Private equity firms still need to have skilled professionals who can interpret the data and make informed investment decisions.

Advisory Services and Banks

In addition to private equity and venture capital firms, the Czech Republic also has a number of companies providing advisory services in these areas. These firms offer a range of services, including fundraising, deal sourcing, due diligence, and portfolio management. Some of the top advisory services firms in the Czech Republic include:

• Deloitte

• EY

• KPMG

• PwC

These firms have a wealth of experience in the private equity and venture capital industries, and can provide valuable insights and guidance to both investors and portfolio companies.

Banks and insurance companies also play a significant role in the private equity and venture capital landscape in the Czech Republic. These institutions provide financing and other services to private equity and venture capital firms and their portfolio companies. Some of the top banks and insurance companies in the Czech Republic include:

• Česká spořitelna

• ČSOB

• Komerční banka

• UniCredit Bank

These institutions have a strong understanding of the needs of private equity and venture capital firms, and can provide customized solutions to meet those needs.

Overall, the presence of top-tier advisory services firms, banks, and insurance companies in the Czech Republic makes it an attractive destination for private equity and venture capital investors. With their deep expertise and local knowledge, these institutions can help investors navigate the unique challenges of the Czech market and achieve their investment goals.

Startups and Fundraising

Czech Republic has a thriving startup ecosystem with a number of innovative companies receiving funding from local and international investors. Private equity firms play a significant role in funding these startups and helping them grow.

In recent years, there has been a surge in the number of startups in the country, with a focus on sectors such as fintech, e-commerce, and software development. These startups have been able to attract funding from local and international investors, including private equity firms.

Fundraising is a critical aspect of startup growth, and private equity firms provide the necessary capital for startups to scale their operations. These firms typically invest in startups at different stages of growth, from seed funding to later stage funding rounds.

Some of the notable funding rounds for Czech startups include:

• In January 2023, fintech startup Twisto announced a €90 million funding round led by private equity firm Silver Lake.

• In November 2022, software development startup Kiwi.com raised €100 million in a funding round led by General Atlantic and backed by private equity firm Accel.

• In March 2022, e-commerce startup ZOOT raised €50 million in a funding round led by private equity firm PPF Partners.

Private equity firms in the Czech Republic also have their own funds dedicated to investing in local startups. These local funds include:

Fund Name Announced Date Rockaway Capital 2013 Credo Ventures 2011 Nation 1 2019 Enern 2018

These funds have been instrumental in providing capital to startups in the country, and have helped create a supportive ecosystem for entrepreneurship.

Overall, private equity firms play a crucial role in the growth and development of startups in the Czech Republic. With their focus on providing capital and support to innovative companies, these firms are helping to build a thriving startup ecosystem in the country.

Exits and Divestments

Private equity firms in the Czech Republic are known for their active participation in divestments and exits. In 2016, the sector of ICT (communications, computer and electronics) had the largest value of private equity divestments, reaching a value of more than 161.6 million euros.

According to Deloitte's Czech Private Equity and Venture Capital Market report, the Czech private equity and venture capital (PE/VC) market was about divestments and fundraising in 2018. The report also reveals that last year, PE/VC funds invested in 23 companies.

Private equity exit activity is returning with vigour after the pandemic-induced capital markets slowdown in the first half of 2020, according to EY's 2021 Global Private Equity Divestment Study. The study also highlights that successful exits require a strong focus on value creation, with the most successful exits typically driven by operational improvements and strategic initiatives.

In terms of acquirer names, it is worth noting that entities such as Advent International, Benson Oak, and Penta Investments have been active in the Czech private equity market. Advent International sold its stake in the Czech online travel agency, Kiwi.com, to General Atlantic in 2019. Benson Oak exited its investment in AVG Technologies, a global leader in internet security, to Avast in 2016. Penta Investments sold its stake in the Czech online pharmacy, Dr. Max, to the South African company, Dis-Chem, in 2018.

When it comes to prices, the largest divestment in the Czech Republic was the sale of the Prague Airport by the Spanish company, Abertis, to a consortium led by PPF Group for EUR 2.5 billion in 2018.

Overall, the Czech private equity market has seen significant activity in terms of exits and divestments, with a strong focus on value creation and operational improvements driving successful exits.

Sustainability in Private Equity

Private equity firms in the Czech Republic have recognized the importance of sustainability and are increasingly integrating environmental, social, and governance (ESG) factors into their investment decisions.

According to a report by EY, private equity firms need to focus on data to be able to tell a convincing story on ESG. This means that they need to collect and analyze data on the ESG performance of their portfolio companies to make informed investment decisions. In addition, private equity firms are signing up to the Principles for Responsible Investment (PRI) in increasing numbers. In 2021, the number of investment manager signatories with at least 10% of their assets invested in private equity expanded by about 250, to 975.

The Czech Private Equity and Venture Capital Association (CVCA) is an association representing the interests of companies active in the area of private equity and venture capital in the Czech Republic. One of its main objectives is to promote and support private equity and venture capital and its development through, among other things, the elimination of administrative and legislative obstacles.

Private equity firms, portfolio companies and investment funds face complex challenges when it comes to sustainability. They are under pressure to deploy capital amid increasing competition for deals and rising valuations. However, they also need to ensure that their investments are sustainable and aligned with ESG principles.

Private equity firms should take the lead in sustainability and set an example for other industries. They should focus on investing in companies that have strong ESG credentials and work with them to improve their ESG performance. This will not only benefit the environment and society but also create long-term value for investors.

In conclusion, sustainable private equity funds are becoming increasingly popular in the Czech Republic. Private equity firms are recognizing the importance of sustainability and integrating ESG factors into their investment decisions. The CVCA is promoting and supporting private equity and venture capital and its development through the elimination of administrative and legislative obstacles. Private equity firms should take the lead in sustainability and set an example for other industries by investing in companies that have strong ESG credentials and working with them to improve their ESG performance.

Top Private Equity Firms Czech Republic Private Equity Funds