ROCA News

Investors' confidence in the Romanian investment market grows

5 years after launch, ROCA Investments announces a valuation of EUR 78 million and an annualized return of 39%
 

• Although Romania is an attractive market, the need for capital is still high among Romanian companies. There is still a major mismatch between demand and supply available on the market.
   
• The investment market has the prospects of becoming a valuable contributor to the national economy: in Romania, 0.02% of GDP is represented by private equity investments vs. 0.7% of GDP at EU level. The latest data show major steps forward for the local market.
   
• Five years after launch, ROCA Investments reports an investment return (IRR*) of 39% and reaches a portfolio valuation of EUR 78 million, up 50% from the previous one.
   
• ROCA Investments builds a unique model of success on the local private equity market, through the structure of holding companies specialized in strategic industries of the economy, providing capital and resources for the growth of Romanian companies with potential.

Bucharest, 27 April 2023 - Five years after its launch, ROCA Investments, a brand founded by Impetum Group and the most dynamic private equity company in Romania, reaches a portfolio value of €78 million, marking a new significant growth - by 50% compared to the previous valuation (as of December 2021) - and reports to shareholders an annualized return (IRR) of 39%. Founded in 2018 with 100% Romanian capital, ROCA Investments has so far completed 5 rounds of capital increase totaling €43.75 million, signed 20 transactions and completed 2 exits.

Between 2018 and 2022, ROCA Investments has increased the amount invested annually, from €4.19 million in 2018 to €34.67 million in 2022, which shows the company's strengthened commitment to Romanian entrepreneurial companies. The evolution of ROCA Investments' thesis and product refinement has always been based on the management team's desire to create positive impact in the Romanian economy.

During this period the market value of ROCA Investments' equity has increased 3.5 times, rising 56% in the last year alone.

The first shareholders in ROCA Investments saw a more than 3-fold appreciation of the amount invested. Shareholders who participated in the most recent round of capital increase, completed at the end of last year, have also already seen a 33% appreciation of their investment.

"The gap between West and East is still unjustifiably large in terms of the role of investment funds and private equity companies in the economy, although the last few years have brought developments in all markets in this respect. However, this gap is a major opportunity for growth, and the main proof is the results achieved by ROCA Investments in the 5 years since its launch. Our objective going forward is to make the company a relevant player for specialist investors in Western Europe and thus to attract another size of capital to Romania. We remain true to our mission to focus on strategic sectors of the Romanian economy, among which industry and agriculture are key for the economic development of the country in the coming years, and to invest exclusively in Romanian companies, with the desire to create regional champions," says Rudolf Vizental, CEO and co-founder of ROCA Investments.

Romania is an attractive market with significant potential for investment due to its geographical location, economic stability and the large number of companies in need of financing, while the current level of investment is well below the European average: 0.02% of GDP private equity investment in Romania vs. 0.7% of GDP investment in the EU.

What's next: main strategic directions for ROCA Investments

In an ambiguous market context, marked by multiple uncertainties at geo-political and macroeconomic level, ROCA Investments is betting on strategic directions of consolidation and development in the coming period:

"First and foremost, our stated objective is to take ROCA Investments to a level of regional relevance: a Romanian private equity company specializing in entrepreneurial companies. We are committed to our mission of investing exclusively in Romanian companies, with the desire to create regional champions through consolidation and international expansion. Moreover, we will support the growth and consolidation of SMEs, the development of more management teams and the creation of brands Made in Romania, viable on any European market. In order to continue to have a positive impact on the Romanian economy, we aim for the next ROCA valuation to exceed 100 million euro", says the company representative.

Through its holdings and companies, ROCA Investments is present in 14 counties of the country, in 2 strategic sectors of activity on which it has specialized: the industrial sector, through the holding ROCA Industry and the agribusiness sector, through the holding ROCA AGRI RDF.

ROCA Investments continues to develop and scale its existing portfolio, with a focus on the two economic sectors. The two holding companies in ROCA's portfolio currently total 15 active companies, including some with a significant presence in Europe. A brand founded by Impetum Group, ROCA Investments is a private equity company with a majority shareholder focus, specializing in acquiring mid-sized entrepreneurial companies and transforming them into performers in the strategic sectors in which they operate.

See the entire portfolio of ROCA Investments companies here

*IRR = Internal Rate of Return is the discount rate at which the net present value (present value) of a stream of (future) income or expense equals zero.