Milestone in search of cash for Romanian market

American financial group Milestone Merchant Partners, which manages the Romania and Moldova Direct Fund (RMDF) investment fund is planning to raise $50 million for a new regional fund aimed at investments in Romania, Bulgaria and Croatia, Collin Hart, RMDF general manager told Ziarul Financiar.
Milestone has invested $11 million on the Romanian market through RMDF so far, and is the main shareholder of Sanex Cluj-Napoca and of the distribution company First Logistic & Distribution. It even held 25% in Rompetrol at some point, which it sold to Austrian oil group OMV last year.
“The raising of a new regional fund is still in its early stages, when talks are being held with potential investors from both Europe and the United States. The money will most likely be available next year,” Collin Hart said.
The manager added the fund would be open to the opportunities in every sector, but would especially look for energy, logistics, retail and constructions businesses. The main financing suppliers of the fund Milestone is now managing in Romania, RMDF, are International Finance Corporation (IFC), World Bank’s investment arm, as well as the Archer Daniels Midland Company (US) and DEG (Germany) financial groups.
The fund had been initially raised and managed by International Equity Partners (IEP), an American company whose founders included Phil Stephenson, Rompetrol’s current deputy general manager. Stephenson used to be IEP’s chairman and is also the one who had RMDF enter the Romanian market and buy into Rompetrol in the first place.
Milestone started managing RMDF in 2001, following the acquisition of International Equity Partners.
“We’re planning on completing RMDF’s investment cycle by a last investment worth $4-$5 million this year,” Collin Hart said. laurentiu.ispir@zf.ro