SEE investment bank in London

The Capital financial group, administrating three investment funds in Romania, the Romanian Investment Fund (RIF), Sweepstone Investment and Romanian Reconstruction Capital (RRC) is planning to open an investment bank in London, scheduled to do business in SE Europe.
The bank’s name will be New Europe Capital Ltd. and its sole purpose is to provide financing for businesses in the Eastern European countries also EU accession applicants, but mainly for Romania and Bulgaria.
“The bank will attract strategic investors and raise some $50-$100 million in cash to invest especially in Romania, Bulgaria and Serbia. The cash will probably be raised some time in the second half next year,” Ion Florescu, Capital Group chairman told Ziarul Financiar.
The bank is now expecting to get the operating licence from the FSA (UK’s capital market watchdog) soon.
“We decided to base our bank in London, because this is the heart of the European financial world. In addition, an FSA licence will bestow credibility upon the bank and make it easier for us to attract new investors in Romania, ” Florescu mentioned.
The cash raised by the investment fund for Romania will be used to support private enterprises, especially the infrastructure-related ones.
“RRC (i.e. the first fund administrated by Capital in Romania) was established to buy shares distributed as part of the mass privatisation process. That time has passed, so that we have to look for private enterprises planning to grow and in need of cash,” the Capital manager said.
This year, Capital has also taken over the administration of the Romanian Investment Fund, one of the most important investment funds on the Romanian capital market.
The fund, with more than $60 million in start-up capital entered Romania in 1996-1997 soon to become one of the principal shareholders of several major Romanian companies: Policolor Bucharest, Rolast Pitesti, Imsat Bucharest, Terapia Cluj-Napoca, Motoractive, First Logistic & Distribution or Titan Mar.