Sustainable Balkans Growth Fund

SUMMARY

The Fund: Sustainable Balkans Growth Fund is targeting SMEs with high-growth potential across the eight
countries of the Balkan Region1

Pursuing sustainable investments in SMEs in industries of interest: food, beverages and consumer goods;
healthcare and life science; industrial manufacturing; transport and logistics; energy, natural resources and
chemical. Deployment of IT and digitalization as cross-cutting themes.

Attractive Region: 24 million population in the heart of Europe

Unmet Demand for Growth Capital: Growing number of SMEs and very limited PE presence. Compared to
CEE and EU27, there are very few risk capital providers in the region. PE investments are about 0.75% of
GDP in Europe, around 0.23% of GDP in CEE, while in the Balkan region the average is only about 0.13% of
GDP.

Strong Investment Team: 70+ years of experience in investing in SMEs in the region, participated in the
closing of 50+ investments and realization of a substantial number of exits in the region

Social Impact: EU Green Deal implementation, Sustainability as a key objective, ESG principles at the
core, catalyst for PE industry development
1
For the purposes of this document, Balkan Region means the WB6 countries (Serbia, Montenegro, Bosnia and Herzegovina, North Macedonia,
Albania and Kosovo), Croatia and Slovenia.
KEY TERMS

TARGETED FUND SIZE € 70 million

INVESTMENT FOCUS SMEs across the eight countries in the Balkan region

HURDLE RATE 5% compounded per annum

FUND TERM 10 years from first close plus 1+1

INVESTMENT PERIOD 5 years from final close

TARGET DEAL SIZE € 2 - 8 million

TARGETED INSTRUMENT Equity and quasi-equity

TARGET STAGE Minority stakes in SMEs

TARGETED RETURNS 20% - 25% gross IRR per investment

INVESTMENT HOLD 3 - 7 years

MANAGEMENT FEE 2.3% per annum on committed capital

CARRIED INTEREST 20%

TARGETED CLOSE Q2 2024

EXECUTIVE TEAM
Dejan KALINIKOV, Senior Partner
dejan.kalinikov@sbalkanscapital.com
has fifteen years of experience with
private equity investments, working
with SEAF-managed funds in North
Macedonia and the region. IT
Engineer with MBA degree from
Emory University, USA.
Vladimir PAJOVIĆ, Senior Partner
vladimir.pajovic@sbalkanscapital.com
has more than fifteen years exepreince
in the banking sector in Serbia,
working as Chief Risk Officer and
Chief Financial Officer in commercial
banks. Economist with MBA degree
from Thunderbird University, USA.
Ivan ŠVERKO, Senior Partner
ivan.sverko@sbalkanscapital.com
has been working in risk management
with several commercial banks and
asset management companies in
Croatia for almost twenty years. PhD
economist with MBA degree from
University of Kentucky, USA.
Zoran MARTINOVSKI, Senior Partner
zoran.martinovski@sbalkanscapital.com
is a development finance professional
working for IFC/WBG for over 20 years
in the Western Balkans region. He
brings specific experience with
implementation of SME access to
finance programs and setting up equity
funds. Economist with MBA degree
from University of Kentucky, USA.
TEAM MEMBERS

Tatjana VELJKOVIĆ, Senior Investment Officer

tatjana.veljkovic@sbalkanscapital.com

has more than fifteen years investment

experience with SEAF managed funds in
the region. Specialized in liquidity
management in SMEs, including start-up
companies.

Lorena MACURA, Junior Partner Maja ZAFIROVSKA, Investment Analyst

lorena.macura@sbalkanscapital.com maja.zafirovska@sbalkanscapital.com

has fifteen years of experience with private has more than 20 years of investment
equity investments, working with SEAF experience in SMEs in North Macedonia,
managed funds in Serbia and the region. working with SEAF managed funds.
SUSTAINABLE BALKANS CAPITAL - TEAM ADVANTAGES

Unique team of financial professionals with specific SME experience: (1) SME equity investments,
(2) SME advisory, (3) SME from commercial banking perspective, (4) implementation of IFC
performance standards

Track record with growth equity investments in SMEs in the region and numerous successful exits

Complement each other’s skills (debt and equity investments, risk management, business
development, financial skills, ICT)

Extensive experience working with SMEs from multiple industry sectors in the region

Experienced, hands-on managers, each proven in its field of expertise

Able to handle various business crisis situations

Members of the management team are well connected within local business communities and well
positioned to receive timely information about potential deals

Combination of skills of the management team as well as strong personal ties makes them specially
equipped to think and act regionally, providing strong growth potential to investment candidates.
TARGETED INVESTORS’ PROFILE AND RATIONALE

IFIs and DFIs (EBRD, EIF, IFC, USAID & DFC, …)

Mobilization of private financing

Corporate governance
Access to technical assistance funds and advisory support (such as WBIF)
Credibility & Visibility
Implementation of ESG principles
Political risk mitigation

Eligible Private Investors

Pension funds and Insurance companies

Wealth funds
Family offices
Credible entrepreneurs with successful exits
 INVESTMENT GEOGRAPHY: BALKAN REGION *

Population of 24 million people

Traditional/historical connections among the

populations/businesses

Underserved market for PE investments

Bank lending is the dominant source of finance

Growing number of SMEs & lack of adequate

financing

PE investments in the region average only 0.13% of the GDP, compared to 0.75% of GDP in EU and 0.23%
of GDP in CEE

Successful local entrepreneurs are looking to expand their businesses both regionally and globally, and
need to implement ESG standards to support the sustainable accelerated growth

Growth financing needed to fill the existing gap in access to capital for small and medium sized, fast-growing
companies

(*) Balkan region (for this purpose) consists of WB6 countries and Croatia and Slovenia
BALKAN REGION: KEY ECONOMIC INDICATORS

Balkan Region represents 1.60%

of EU GDP and 5.26% of EU
population

It has a younger population than

EU average and a less urban
population (measured by median
age of the % of younger population)

Per capita GDP is more than 3x

lower than the EU average (8,917
vs 29,157 EUR)
Sources: IMF, WB, Eurostat, EBRD and EIB

However, GDP growth rates in the Balkan Region are higher than the EU average (and have higher
growth potential)

GDP growth rate over the past decade in the Balkan region was 4x higher than the EU’s
BALKAN REGION: KEY ECONOMIC INDICATORS

Number of SME companies p.c. is

lower than the EU average - while
the proportion of persons employed
in SMEs is higher

Substantially higher unemployment

rate among the young

Projected financing gap for SMEs

is more than 4x higher than in EU
countries
Sources: IMF, WB, Eurostat, EBRD and EIB
REGIONAL POTENTIAL

Growing Economies: According to World Bank

projections, in 2023 GDP in the region is expected to grow
by 2.1%, again higher than the Euro area anticipated
growth of 0.3%

The Fund’s investments will allow small and medium sized

companies in the region to grow and expand, thus
creating employment opportunities and retaining
entrepreneurial and managerial talent in the region

EU Convergence: Serbia, North Macedonia, Bosnia and Herzegovinia, Montenegro and Albania are on
course to join the EU during the Fund’s investment horizon. The Fund investee companies are expected to
benefit from legislation convergence and economic growth
PRIVATE EQUITY IN EUROPE

All Private Equity - Investments as % of GDP

2021 - Market Statistics - Location of the portfolio company

Source: Invest Europe

GROWTH INVESTMENTS IN EUROPE

Growth - Investments as % of GDP

2021 - Market Statistics - Location of the portfolio company

Source: Invest Europe

ROOM FOR GROWTH OF PE IN CEE

Source: Bain & Company

INVESTMENT OBJECTIVE

The Fund seeks to generate significant returns on its investments by investing equity capital in the growth
and expansion stage of SMEs with recognized growth potential

The regional approach should provide benefits to the portfolio companies, allowing them access to a market
of 24 million people. Slovenia and Croatia to serve as gateways to the EU for the region.

The Fund will help the region to reduce the economic gap compared to the developed EU countries
• Facilitate generation of sustainable jobs
• Allow retention of entrepreneurial and managerial talent
• Reduce brain drain

The Fund will serve as a vehicle for implementation of the EU Green deal for the region
• Transform the region into a prosperous society, with a resource-efficient and competitive economy
• Target of zero net emissions of green-house gases by 2050
INVESTMENT APPROACH

Experienced fund management team

• 70+ years of investment experience in the region
• 50+ investments & substantial number of realized exits
• Ability to generate promising pipeline
• Deal structuring know-how

Targeted stage of development

• SMEs (willing to adopt ESG standards)

Assistance to portfolio companies (value-added approach)

• Support in the domains of strategy, finance, marketing and operations management
• Engagement of industry experts
• Access to additional financing (if needed), utilizing the team’s strong relations with other financial institutions

Sector and industry agnostic

Exits via sales to third parties (incl. strategic buyers and other investment funds), MBOs and IPOs
• IPOs are of significant importance for the development of the financial markets in the region, and the Fund will
work together with the stock exchange authorities in the region to facilitate IPOs for its investees.
TARGETED COMPANIES’ PROFILE

Sectors with significant sustainability potential - food, beverages and consumer goods; healthcare and
life science; industrial manufacturing; transport and logistics; energy, natural resources and chemicals; ICT
and digitalization as cross-cutting themes for the development of the industries above

Enthusiastic and trustworthy entrepreneurs and management teams, incentivized and committed to
entering into partnerships for the next stage of growth

Potential to become national and regional leaders, with a possibility for international scalability

Ability and potential to generate profits through sustainable business models

Innovative teams, open to learn and implement best business practices and ESG standards
PE INVESTEMENTS BY SECTOR IN EUROPE

All Private Equity - Investments by sector

2021 - Market Statistics - % of Amounts & Number of companies

Source: Invest Europe / EDC

WIDER SOCIETAL IMPACT

The Fund will serve as a catalyst for the development of the Private
Equity industry and PE investment professionals in the region

The Fund will particularly focus on ESG compliant investments

• ESG savvy companies are more likely to realize sustainable
profits over time, increasing their economic and financial value

The Fund will adopt a “Sustainability Policy”

• Investment decision process will integrate sustainability risk analysis
• Methodology for selection and monitoring of investments to take into
account ESG and SRI factors
SUSTAINABILITY INVESTMENT PHILOSOPHY

ESG-environmental, social and governance factors at the heart of our

business model and a key driver of our investments

Full integration and consistent implementation of sustainability in the Fund’s

investment strategy, fostering investments in companies with real cashflow
generation capacity and long-term capital growth potentials while making a
positive impact in the environment and society by solving sustainability issues

Balance traditional investment approach aimed at delivering attractive

returns, with ESG considerations to reduce risk, enhance performance while
improving long-term outcomes

Prioritize investments that promote resilient ecosystems with special focus on climate change mitigation
and responsible resource consumption and create equal opportunities

Develop an investment portfolio with a sustainability at the core by engaging with the best-in-class
investment prospects and sustainability leaders that combine strong financial performance and robust
governance, while excluding unsustainable businesses and industries.
EXIT STRATEGIES

Evaluation of exit alternatives prior to any investment including strategic buyer

landscape (regionally and internationally)

Utilize well-structured equity and quasi-equity instruments allowing

simplified exits

Communication with other regional and international PE and Growth funds

Organize and manage competitive exit process

Work with the entrepreneurs and the management teams to maximize prospects for successful exits (sales
process)

Look for consolidation opportunities

Work closely with local/regional stock exchanges and securities commissions in order to promote and utilize
IPOs as desired exit in order to help support revive local capital markets.
EXITS TRACK RECORD

25+ exits
Mostly MBOs
Number of Trade Sales (to third parties)
WHY INVEST IN SUSTAINABLE BALKANS GROWTH FUND?

Be part of the sustainability change in Balkans

Risk capital underserved region - very limited investors’ presence, but growing
demand for risk capital investments

Ride the growing “wave” of PE investments in CEE

Facilitating the implementation the EU Green Deal in the Balkans

Expected superior economic and financial rates of return

• Benefit from EU convergence of the region

Hands-On experienced team with strong market knowledge

DISCLAIMER

This presentation is provided to you solely for discussion purposes and solely to provide background information about Sustainable Balkans Growth Fund (the “Fund”). This presentation does not
constitute an offer to sell, or a solicitation of an offer to buy, any security and may not be relied upon in connection with the purchase or sale of any security.  Any such offer would only be made by
means of formal offering documents with respect to the Fund, the terms of which would govern in all respects.  You are cautioned against using this information as the basis for making a decision
to purchase any security or to otherwise engage in an investment relationship with the Fund. Sustainable Balkans Capital will act as the manager of the Fund (the “Manager”).
The information contained herein does not purport to contain all of the information that may be required to evaluate an investment in Sustainable Balkans Growth Fund.  The information set forth
herein does not purport to be complete and no obligation to update or otherwise revise such information is being assumed.

By accepting this presentation, the recipient acknowledges and agrees that: (i) this presentation is confidential; (ii) the recipient will not distribute or reproduce this presentation, in whole or in part;
(iii) if the recipient does not wish to pursue this matter, or at the request of Sustainable Balkans Capital, the recipient will return this presentation to the Manager as soon as practicable, together
with any other material which the recipient may have received from the Manager relating to the subject matter of this presentation; (iv) the recipient will, and it will cause its directors, partners,
officers, employees and representatives to, use the information only to monitor its investment interest in the Fund and for no other purpose and will not divulge any such information to any other
party; and (v) any proposed actions by the recipient which may be inconsistent in any respect with the foregoing will require the prior written consent of the Manager.

Recipients of this presentation are advised that securities laws of some jurisdictions restrict any person who has material, non-public information about a company from purchasing or selling
securities of such company (and any options, warrants and rights relating thereto) and from communicating such information to any other person under circumstances in which it is reasonably
foreseeable that such person is likely to purchase or sell such securities. By accepting these materials, the recipient agrees not to purchase or sell such securities in violation of any such laws.

The information contained herein will be qualified in its entirety by reference to the Fund’s offering memorandum and other constitutive documents (the “Fund Documents”), which will contain
additional information about the investment objective, terms and conditions of an investment in Fund and also contain tax information and risk disclosures that are important to any investment
decision regarding the Fund.  No person has been authorized to make any statement concerning the Fund other than as set forth in the Fund Documents and any such statements, if made, may
not be relied upon. Notwithstanding the foregoing, each investor and prospective investor (and each employee, representative, or other agent thereof) may disclose to any and all persons, without
limitation of any kind, the tax treatment and tax structure of Fund and its investments and all materials of any kind  (including opinions or other tax analyses) that are provided to such investor or
prospective investor relating to such tax treatment and tax structure, provided, however, that such disclosure shall not include the name (or other identifying information not relevant to the tax
structure or tax treatment) of any person and shall not include information for which nondisclosure is reasonably necessary in order to comply with applicable securities laws.

AN INVESTMENT IN THE FUND IS SUBJECT TO SIGNIFICANT RISKS, INCLUDING THE RISK OF TOTAL LOSS OF THE INVESTMENT. THESE MATERIALS DO NOT DISCLOSE ALL THE
RISKS AND OTHER SIGNIFICANT ISSUES RELATED TO AN INVESTMENT IN THE FUND.  PRIOR TO INVESTING IN THE FUND, POTENTIAL INVESTORS SHOULD ENSURE THAT
THEY FULLY UNDERSTAND THE TERMS OF THAT PROPOSED TRANSACTION AND ANY APPLICABLE RISKS, SOME, BUT NOT ALL, OF WHICH ARE DESCRIBED IN MORE DETAIL
IN THE FUND’S OFFERING MEMORANDUM. The interests in the Fund will be illiquid, as there is no secondary market for interests in Fund and none is expected to develop.  There will be
restrictions on transferring interests in the Fund, investments may be leveraged and the investment performance may be volatile.  Before deciding to invest in the Fund, prospective investors should
read the Fund Documents and pay particular attention to the risk factors contained in the Fund’s offering memorandum. The fees and expenses charged in connection with an investment in the
Fund may be higher than the fees and expenses of other investment alternatives and may offset profits. Investors should have the financial ability and willingness to accept the risk characteristics
of the Fund‘s investments.
DISCLAIMER

Certain information contained in this presentation may constitute “forward-looking statements” which can be identified by use of forward-looking terminology such as “may,” “will,” “target,” “should,”
“expect,” “attempt,” “anticipate,” “project,” “estimate,” “intend,” “seek,” “continue,” or “believe” or the negatives thereof or other variations thereon or comparable terminology.  Due to the various risks
and uncertainties, actual events or results may differ materially from those reflected or contemplated in such forward-looking statements. There can be no assurance that any targeted or illustrative
returns will be achieved.

Nothing contained herein should be deemed to be a prediction or projection of future performance of the Fund. Prospective investors should make their own investigations and evaluations of the
information contained herein.  Each prospective investor should consult its own attorney, business adviser and tax adviser as to legal, business, tax and related matters concerning the information
contained herein and such offering.  Each prospective investor’s tax treatment depends on its individual circumstances and may be subject to change in the future. 

Unless otherwise noted all performance does not reflect the deduction of advisory fees and organizational expenses.  As such, it should be noted that actual performance will be lower.  Investors'
returns will be reduced by advisory fees.

Target returns are hypothetical in nature and are shown for illustrative, informational purposes only. Target returns are based on a number of factors, including, for example, observed and historical
market returns relevant to the applicable asset class, projected cash flows, projected future valuations of target assets and businesses, relevant other market dynamics (including interest rate and
currency markets), anticipated contingencies, and regulatory issues. Certain of the assumptions have been made for modeling purposes and are unlikely to be realized. No representation or
warranty is made as to the reasonableness of the assumptions made or that all assumptions used in achieving the returns have been stated or fully considered. Changes in the assumptions may
have a material impact on the target returns presented. All data is shown before fees, transactions costs and taxes and does not account for the effects of inflation. Management fees, transaction
costs, and potential expenses are not considered and would reduce returns. Actual results experienced by clients may vary significantly from the target returns shown.
 w w w.sb a l ka n sca p i ta l . c o m

Suistainable zoran.martinovski@sbalkanscapital.com

Balkans Capital ivan.sverko@sbalkanscapital.com

dejan.kalinikov@sbalkanscapital.com
HQ: Zagreb, Croatia vladimir.pajovic@sbalkanscapital.com
PE INVESTEMENTS IN CEE GROWTH 2003 - 2021

Private equity investment in the CEE region more than doubled in 2021, reaching its highest recorded
annual value at €4.15 billion, funding a record 672 companies. The number of companies was 11% above
the previous year, a result of a significant increase in growth funding, as well as the continued increase in
venture capital funding - a trend started in 2018.

CEE private equity investment measured as a percentage of the region’s GDP increased from 0.108%
in 2020 to 0.228% in 2021.

Source: Invest Europe / EDC

CEE PE INVESTORS’ PRESENCE IN THE BALKAN REGION

Small Cap
(EV<~€50M)
(EV~€50-100M)
Mid-Cap

Upper mid-cap
(EV~€100-300M)
MARKET KNOWLEDGE

SB Capital has strong knowledge of the entire market in the Adriatic region, supported with strong local
presence and rich network of contacts.

Sustainable Balkans Growth fund will have a significant field presence in the region.

Offices are planned for :

• Zagreb (HR)
• Belgrade (SRB)
• Skopje (NMK)
CASE STUDY - On.net (North Macedonia)
General Information
Country North Macedonia
Industry Telecom
Fund SEAF Macedonia
Capital Invested US$ 394,000
Ownership 38%
The story of On.net
On.net was founded in late 2000 as a partnership between two entrepreneurs,
the Fund invested soon after the foundation. The company’s business model of
providing wireless internet access to residents and businesses, along with
quality service and customer care, proved to be excellent tactic not only to
challenge the comfortable position of the incumbent telecom operator, but also
to quickly overcome the other competitors. By implementing a nationwide
wireless internet access network in 2005, the company became a serious
player in the telecom sector in Macedonia, attracting attention of larger regional
players.
Fund Manager’s Value Creation
Fund’s capital investment in On.net allowed the company to purchase telecom
equipment and immediately attract attention of the customers with aggressive
marketing campaigns and suitably priced services. Additionally, the Fund
Manager provided On.net with the following post-investment assistance:
• Engaged industry expert to create a successful business strategy;
• Delegated one of its team members as a CFO of the company to manage the
cash flow and plan the CAPEX of the company;
• Secured additional financing for the company from the local commercial
banks to facilitate the accelerated growth of the company.
In 2006, the Fund successfully exited On.net through trade sale to Telekom
Slovenije, one of the largest regional players in the telecom industry, generating
a gross IRR of 45% and 6.5x MoIC.
On.net was the fastest growing Internet Service Provider (ISP) in
Macedonia. At the time the Fund exited the company, On.net was the
second largest ISP in the country (immediately after the incumbent telecom
operator, Macedonian Telecom, owned by Deutsche Telecom). The
company successfully implemented and operated its own wireless telecom
network throughout North Macedonia, allowing internet access even to the
population in the most remote rural areas of the country.
Impact
On.net’s presence on the Macedonian market was of crucial importance for
the growth of the internet penetration rate in North Macedonia:
• On.net was the leader of the campaign for liberalization of the telecom
sector/market in Macedonia.
• On.net’s innovative approach in offering new services to the market has
allowed more people and business to get on-line and promoted N.
Macedonia into a regional leader in terms of the internet penetration.
• Recognized for its innovative concepts, On.net was contracted by USAID to
connect all schools in the country to internet. To implement the project, the
company had to build its own wireless internet access network throughout
the country. The successful network (and project) implementation helped N.
Macedonia to be recognized as “the first wireless country in the world”, and
the story was featured in the BBC show Click-on-line.
CASE STUDY - Aronija (North Macedonia)
General Information Aneta Stajic began her business from her kitchen table, experimenting with
Country North Macedonia organic recipes and ingredients. With the Funds help, her brand,
Industry Food Biocosmos, became a leading Macedonian health food brand, with exports
Fund SEAF Macedonia Fund II in the region. During the two plus years as a Fund’s portfolio company,
Capital Invested US$ 226.000 Aronija was able to grow its revenues by 3.2x, its tax payments 9.5x and
Ownership 20% employee count by 3.6x.

The story of Aronija and Biocosmos

Founded in 2003 by Aneta Stajic, Aronija Zdrava Hrana (“Aronija”) is a
Macedonian company engaged in the production of natural and organic food
under the Biocosmos brand. Having extensive experience in the health food
industry, Stajic began her business as a small health food bakery. Her interest
in nutrition and the health of her fellow citizens led her to experiment and
expand her product offerings. Impact
Aneta’s success and passion for supplying nutritious food serves as a
Fund Manager’s Value Creation powerful example of the capabilities of female entrepreneurs in a region
Fund’s capital investment in Aronija allowed the company to purchase where business is dominated by men.
additional equipment for the production of new gluten-free and organic In 2017, when the Fund exited the company, Aronija offered more than 400
products, make improvements to its production facility and distribution products, including various organic, gluten-free, vegetarian and vegan
capabilities, and construct an additional plant and warehouse in line with the offerings. Biocosmos became a well-recognized brand for organic, healthy
highest food safety guidelines. Additionally, the Fund Manager provided Aronija food in North Macedonia. Its products are available for purchase in all major
with the following post-investment assistance: supermarkets throughout North Macedonia, as well as in health food stores,
• Advising the company in its efforts to improve its cash management online and in Biocosmos’s 14 stores, and exported into the neighboring
• Assisting with an in-depth analysis of sales and inventory for Aronija’s entire countries.
product range, allowing the company to determine which products should be
kept in circulation
• Strategic planning to increase Aronija’s exports, resulting in increased sales
In 2017, the Fund successfully exited through trade sale to a local strategic
acquirer, generating a gross IRR of 18.0% and 1.44x MoIC.
CASE STUDIES - Gomex (Serbia)
General Information
Country Serbia
Industry Retail
Fund SEAF South Balkan Fund
Capital Invested EUR 1,470,000
Ownership 35%
Chasing the Entrepreneurial Dream
Goran Kovacevic arrived in Serbia as an immigrant, displaced from his home in
Bosnia as part of the ethnic realignments by the warring factions in the Balkan
conflict. Goran founded Gomex in 1997 as a wholesaler in Northeastern Serbia,
a region of the country with historically high unemployment and little economic
investment. Gomex has evolved into a neighborhood-supermarket concept. Its
stores are big enough to offer a wide selection at competitive prices, yet small
enough to be located near customers in congested urban areas.
Fund Manager’s Value Creation
Fund Manager provided Gomex extensive post-investment business
assistance, including:
• Recruited industry experts to train employees across all organizational levels,
ranging from store managers to senior staff
• Played a vital role in selecting Gomex’s management team
• Analyzed potential targets for Gomex to acquire
• Negotiated favorable financing terms with banks and suppliers
• Facilitated partnership withs Spar, Migros and DekaMarkt, leading European
grocery chains, and brought in their senior management to advise Gomex on
its store layouts, cost management, merchandising and expansion planning
In April 2022, the Fund exited Gomex by selling its share to another PE fund
active in the region. Over the lifetime, the investment in Gomex generated MoIC
of 10.7x.
In 2007, the Fund invested € 1.47m in the Company, when it operated 16
stores with 306 employees. At the time of exit, the Company operated 207
stores providing nearly 2,400 quality jobs, generating annual revenues of
EUR 147m and achieving an EBIDTA margin of 3.8%. Following Fund’s
investment, Gomex was able to grow its employee base 7.8x, increase its
sales revenue 9.6x, grew its tax payments 22.6x, and increased its EBITDA
22.1x in euro terms during the 2007-2021 period.
Impact
As a refugee himself, Goran has emphasized providing sustainable
employment, particularly to young adults. Training programs and providing
paths to career growth have garnered a loyal workforce and alleviated the
region’s high youth unemployment rate. Combined with Gomex’s continued
dedication to sourcing local food products, with an emphasis on sustainable
foods, and engaging in charitable activities have made Gomex a significant
regional source of development.
Today, Gomex is a sought-after employer in the region. Well-paying jobs and
generous benefits packages have motivated employees to create a positive
work environment. Minorities, people with disabilities, and other marginalized
groups are welcomed at Gomex, noticeable in the approximately 75% female
makeup of the workforce, including a co-founder and two executive
managers.