A Convergence Play
AMC Funds’ mezzanine and associated private equity investments, focus almost exclusively on Central and Eastern European countries that acceded to the European Union in 2004 and 2007, as well as select investments in neighbouring markets with exceptional opportunities, or EU accession candidates.
Reasons for Growth Finance in Central Europe
Three equally important factors qualify the need for growth finance in Central Europe:
- An improved macroeconomic, regulatory, and legal framework that allows for strong growth, even in a difficult global market environment.
- A funding gap resulting from a limited number of dedicated providers of non-equity term finance for growing companies.
- An underserved region by traditional lenders, as Basel III regulations have had a negative effect on bank liquidity, opening space for alternative capital providers.
Response to the Scarcity of Classical Funds
Investments are well diversified across sectors within the region. Anticipating the growing opportunity for high-grade investments along with regional convergence, the credibility and demand for mezzanine finance will correlate in growth. This will occur, particularly as other sources of financing temporarily withdraw from the market or contract as a result of financial crisis/pandemics etc., and as the availability of increasingly attractive pricing is realized from an improved risk/return profile.
Doing business in a fragmented region comprising numerous countries, languages, legislation, economic frameworks, and currencies, such as Central Europe, requires the utmost dedication and expertise. AMC Funds advisors have extensive local knowledge with regional offices, local Teams and an impressive Track Record.