Romanian private equity firm ROCA Investments registers sixth consecutive year of growth, plans expansion
The private equity company ROCA Investments recently announced its sixth consecutive year of growth and a pre-dividend market value of EUR 81.6 million in 2023. The company also registered an annualized investment return of 29.11%.
The market value of ROCA Investments' equity has increased 3.7 times since its inception until the end of 2023. Despite challenges, the company generated a portfolio return of 6.63% last year for its 750 investors.
The company controls, as a majority shareholder, two holdings specialized in strategic industries (construction materials and agriculture) and a portfolio of minority stakes in five Romanian companies. This comes to 19 individual companies overall. The combined turnover of the companies in the portfolio reached EUR 345 million in 2023, generating an operating profit of EUR 12 million and providing over 2,000 jobs nationwide.
Starting from the stated objective of consolidating the SME area, during the period 2018 – 2023, the amounts invested by ROCA Investments in Romanian companies reached a total of EUR 54 million in direct investments and another EUR 55 million in investments made by the companies in the portfolio.
"The year 2023 represented the greatest test of resilience for ROCA Investments, with major challenges in the key areas that make up our portfolio: the construction materials industry and agriculture. Like a marathon, this interim result is just a milestone in an endurance race, a result that proves the ability to grow even in difficult market conditions. Unlike traditional funds, with an exit horizon of 8-10 years, ROCA Investments is structured as an evergreen fund, which not only allows us to pursue higher investment returns due to the benefits of the compound effect but also to focus on the consolidation and long-term growth of companies in our portfolio, with the goal of creating regional champions," said Rudolf Vizental, CEO and co-founder of ROCA Investments.
ROCA Investments applies a unique model on the local private equity market - the buy & build model, with a majority shareholder focus, specialized in taking over and transforming medium-sized entrepreneurial companies. Out of 100 companies they take into consideration, only one or two transactions are made, according to Vizental. ROCA chooses companies that are active in domains that are resilient to geopolitical events, offer scaling opportunities regionally, and complement the companies already in ROCA’s portfolio.
For ROCA, the main objective for 2024 is to consolidate the premises of the third pillar of development, alongside those specialized in construction materials and agriculture. This represents an essential step in preparing for the listing on the main market of the Bucharest Stock Exchange in 2026, aiming to reach a market value of EUR 150 million, to which two future capital increases will also contribute. The company plans to hold onto its specialized holdings model in the future as well.
(Photo source: ROCA Investments)
