Private equity management

PRIVATE EQUITY MANAGEMENT

Royalton Partners’ management team has been investing in Central Europe since 1990 providing 120 years of combined asset management experience.

The core of Royalton Partners’ strategy is to focus on non-tradable sectors. Businesses in these sectors primarily service local markets and are not as exposed to international trade.

We incentivize management with equity ownership programs to create shareholders value and assist them in strategic decisions.

Royalton Partners’ management team has been investing together for more than 30 years and is focused on the management of illiquid assets held in closed and open-ended fund structures, including private equity, real estate and infrastructure.

OUR APPROACH

SPECIALIST IN NON-TRADABLE SECTORS

The core of Royalton Partners’ strategy is to focus on non-tradable sectors.

Businesses in these sectors primarily service local markets and are not as exposed to international trade. Consequently, these sectors are relatively immune from international competition, benefit from increased pricing power as price levels in the Region converge with price levels in the EU generally, and gain as these sectors grow to a size relative to the local economy (as a percentage of GDP) comparable to their Western European counterparts.

Royalton Partners seeks to invest in companies with strong management teams, solid cash flows and a leading market share or control of a defined market niche.

On selective basis, Royalton Partners may also invest in undervalued and under-performing companies that need restructuring.

HANDS-ON APPROACH

Royalton Partners has developed a disciplined investment process based on its extensive portfolio management experience

Analyze investment opportunities in a European context
Identify opportunities in non-tradable sectors
Take only control positions
Align management through the granting of options or the sale of discounted shares
Assist management on a daily basis providing international perspective and ensuring strategic focus

Royalton Partners does not confine its strategy to any business sector or group of sectors, however examples of industries where Royalton Partners made successful investments in the past are: financial services, media, education, retailing, green energy, transportation, IT, telecommunications and environmental services.

SPECIALIZING IN CEE REGION

The EU convergence process continues to present an exceptional investment opportunity in the most economically dynamic region of European Union.

Under its Private Equity Management business line, Royalton Partners manages Royalton Capital Investors II, a Guernsey law private equity fund established in 2007, which holds regional investments in Central Eastern Europe and has highly reputable institutional investors.

Previously, Royalton Partners also managed Royalton Capital Investors LDC, a 2000 vintage private equity fund, which acquired six investments in the same region. Over the years, Royalton Partners has produced superior investment returns – Royalton Capital Investors LDC achieved a 3.2x multiple and 23.5% gross IRR on realized investments. To date, the Royalton Partners team has deployed over USD 370 million of capital in the region.

CASE STUDIES

Lexpera and IUS
Online Legal Information

Turkey, Slovenia, Croatia

Elsö Lakáshitel
Bank

Hungary

Starman
Cable TV operator

Estonia

OUR INVESTMENT PORTFOLIO

POLAND

Vratislavia Holdings

Real estate
Poland
2004-Present

mPunkt Polska SA

Development capital
Poland
2002-2010

KOM-EKO S.A.

Leveraged buy-out
Poland
2011-2018

City Parking Group

Development capital
Poland
2009-2017

HUNGARY

Allami Nyomda Rt.

Leveraged buy-out
Hungary
2000-2006

Lang Kiado & Holding Rt.

Leveraged buy-out
Hungary
2000-2008

Ella Bank

Development capital
Hungary
2002-2007

SLOVENIA, CROATIA, TURKEY

IUS Legal and Business Solutions

Buy-out, expansion capital
Slovenia, Croatia and Turkey
2011-Present

ESTONIA

Starman AS

Buy-out, expansion capital
Estonia
2000-2007

LITHUANIA

Litcargus

Leveraged buy-out
Lithuania
2011-2019

CZECH REPUBLIC

EPG (Energy Power Group)

Infrastructure, development capital
Czech Republic
2010-Present

ROMANIA

CertAsig S.A

Development capital
Romania
2007-Present