DrKC buyout club opens in Hungary

Dresdner Kleinwort Capital has extended its buyout networking group to identify private equity opportunities in Central Europe.

Following on from a similar initiative in Poland, Dresdner Kleinwort Capital (DrKC) is launching an MBO/MBI club in Hungary as it intensifies its efforts to identify private equity opportunities in the Central European region.

The Dresdner Kleinwort Capital and Pedersen & Partners’ MBI & MBO Club is being launched and managed together with Pedersen & Partners, an executive search firm dedicated to the recruitment of top and middle managers in Central and Eastern Europe.

The Club is targeting senior managers and CEOs from Hungarian businesses who hope to be successful future MBO/MBI candidates. An introductory seminar for the club took place last week at the Hotel Marriott in Budapest.

The network will come together three times a year to discuss issues relating to management buyouts and management buy-ins. Legal questions, taxation, valuation and pricing issues, and corporate re-engineering theories will be amongst the topics covered.

Janusz Heath, DrKC’s managing director for private equity in Central and Eastern Europe, believes that the club will help to accelerate the MBO/MBI market in the region: “MBOs/MBIs are already an established way of selling and buying companies in Western Europe and are starting to be seen in Central Europe. The aim of this club is to help entrepreneurs with the skills and knowledge they will require to be successful in the MBO/MBI process. The Club has already proved successful in Poland. We will also be launching a similar network in the Czech Republic later in the year.”

DrKC’s $225m Emerging Europe fund recently closed with backing from Dresdner Bank, CalPERS (the Californian Public Employees Retirement Fund), GIMV and Donator. The fund invests between $3m-$25m in companies in the region with exceptional growth potential, primarily pan-regional businesses, roll-outs, companies requiring expansion and replacement capital and MBOs/MBIs. The fund focuses on the telecommunications, media, IT/technology, healthcare services, branded consumer products, distribution, retailing and specialist engineering sectors.