4i Capital Partners
PE / VC
Investment Strategy We invest in private sector medium-sized businesses with a strong potential to deliver sustainable profitable growth. We are looking for opportunities to consolidate fragmented niche markets, to substitute imports, to expand regionally or to reshape an industry by unique products or services. We invest with entrepreneurs that think out of a box, have a clear vision and capacity to do the right things right. Investment Criteria We employ the following key criteria when making a decision in which companies to invest: Investing in SMEs We invest primarily in medium-sized companies in niche sectors of the economy. Our primary investment strategies include market consolidation, import substitution, innovation and regional expansion. Partnership We typically take a majority shareholding in our portfolio companies. We are looking for real partnerships with a fair balance between financial and operating partners. We always seek to align interests of all stakeholders. Consumer Sectors We remain convinced that over 40 million people living in Ukraine are striving for better products and services. It is a big enough market to prosper. Leadership Our portfolio companies normally hold top market positions or have a clear potential for leading the market. Team We invest in or with professional and ambitious management teams, sharing the same vision with us on how to create value and build a strong business. We provide economic incentives for the team to benefit along with shareholders. Transparent Business Strategy Principles of the business and how money runs through the operations must be well understandable to us and auditable. The business plan shall be realistic. Financial Prudence We seek to invest in profitable businesses or companies capable of reaching positive operating cash flows within 12 months of investment. We avoid business with excessive debt and unmanageable foreign currency exposure. Potential for Target Return & Liquidity We are reasonable at entry, and prepared to share profits at the end. Our investment horizon is long enough, yet we only invest in companies that have natural potential for a trade sale. Team Our team includes veterans of the private equity industry in the region as well as ambitious talented professionals, bonded by the 4i Capital Partner’s investment philosophy of integrity, innovation, intelligence and impact. The combined experience of the company’s investment team is nearly 50 years of doing deals and developing companies in Ukraine, Belarus and Moldova. The founding partners of 4i Capital Partners have been working together since 2008, having raised the Europe Virgin Fund and having made all of its portfolio investments. Our experience shows that only active management of investee companies may lead to results. Sitting in the passenger seat of a minority shareholder often does not. We take controlling stakes, as only that assures a balanced relationship with our local partners, commonly founders of the business. Our team members have successful experience in taking management roles in our portfolio companies, if and when needed.