American investment management company SigmaBleyzer is planning to launch an investment fund worth $100 million for the business opportunities in Romania and Bulgaria early next year.
The operations of the fund will be co-ordinated from Sofia, where SigmaBleyzer, which already has a strong presence in the area (Ukraine) has recently opened a representative office.
“We’re planning on launching an investment fund for SE Europe, and primarily for Romania and Bulgaria. Chances are very high that these countries will share the fate of those that are now part of the first EU accession wave. This is probably the most interesting area in Europe at the moment,” Michael Bleyzer, SigmaBleyzer President and CEO said.
The fund, which will be raised in two successive tranches worth $50 million each, will become operational in the first quarter of next year.
“We will target telecoms, software development and any other field that involves high-tech. That is the sectors favoured by a high education level, IT skills and low work force cost in the area,” Bleyzer specified. Other priorities on the list are tourism, processing industries and those related to agriculture.
The fund will be looking for companies in which to invest $1 to $5 million, aiming at majority shareholder positions.
“We are not necessarily looking for the best companies out there. We will be looking for promising companies currently undervalued,” Michael Bleyzer said.
When contacted by Ziarul Financiar, the SigmaBleyzer officials could not provide any further details about the fund’s plans for Romania.
“The fund raising is in progress, so that we cannot provide any more details about our plans for Romania. The opening of the office in Sofia is the first step for SigmaBleyzer in the region; any other major decisions will be made depending on the development of the business,” Alexander Chapko, SigmaBleyzer PR manager told Ziarul Financiar.
SigmaBleyzer was established in 1993 by the American Bleyzer family. Michael Bleyzer, one of the company founders, had a 15-year career with Exxon Corporation and Ernst & Young.
SigmaBleyzer’s involvement in Eastern Europe began in 1996, when it co-ordinated the establishment of a family of funds in Ukraine, the Ukrainian Growth Funds (UGF), worth $150 million.
UGF’s portfolio includes companies like Volia (one of the leading cable operators in the region), Softline (one of the top local software developers), Sevastopol Marine Plant (shipyard), Poltava Confectionery or Zaporizhye Meat Processing (foodstuffs).
Besides SigmaBleyzer, several other investment management companies have announced plans to raise new investment funds for Bulgaria and Romania.
The Capital Group currently managing Romanian Investment Fund (RIF) and Romanian Reconstruction Capital (RRC) is planning to raise an investment fund aimed at infrastructure and utility businesses. This is exactly what Milestone Merchant Partners, which is already operating on the Romanian market through Romania & Moldova Direct Fund intends to do, as well. laurentiu.ispir@zf.ro