Region:

Whole Central and Eastern Europe with focus on the core countries Poland, Czech Republic, Slovakia, Hungary, Romania and Bulgaria plus Austria, Slovenia, Croatia, Serbia, Estonia, Latvia and Lithuania. Investments in Ukraina and Turkey will also be considered in exceptional cases.

Sectors:

Special focus on the following areas:

• Technology & Telecoms
• Media & Marketing Services
• Services (Business, Financial and Healthcare Services)
• Environment & Energy

EU Growth Sectors – Other sectors which are most likely to benefit from the catch up to the western EU or the pre-accession run up

Stages:

Expansion capital and buy-outs

Profile:

A company that requires capital to accelerate growth or to consolidate an industry sector.

The Company should have positive operating cash flow, established customer base and growth strategy that supports a future exit.

Business Models:

Business models predominant for Central European private equity investments are

• companies with innovative technologies and services capable of competing in global markets or
• companies that have the potential to be market leaders in local countries or the region

Forms of Investment:

Subscription of new shares issued by the Company

Purchase of existing shares

Convertible debt, warrants or a combination of the above

Size:

Preferred equity deal size is in range of € 2 to € 20 million.

Much larger investments (up to € 30 million) are possible, or 3TS Capital Partners can syndicate even larger investments.

Milestones:

The investment may be made in one or more tranches linked to operational milestones.

Share Ownership:

The Funds can hold either minority or majority stake depending on the investment profile and other shareholders.

Syndication:

Often the Funds choose to co-invest alongside other private equity firms.

Board Membership:

3TS Capital Partners often seeks a position as a board member.

In this role, 3TS Capital helps to establish management systems, strategic development, recruitment, identification of sales partners etc.

Industry Experts:

The 3TS team is experienced across several industry sectors and can thus provide knowledge and expertise. Additionally 3TS Capital Partners can leverage its vast international network of industry experts and partners that typically enhance post-investment business development.

Timeframe:

The period of the investment is usually 3-5 years.

Exit:

The primary purpose of 3TS Capital Partners is to realise capital gains. To exit an investment, 3TS works with the management of the Company and other shareholders to achieve a sale of the Company to either a trade buyer or the public markets.

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