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ROCA News
ROCA Investments records sixth consecutive years of growth, despite a challenging year, and a market value of 81.64 million euro in 2023
· ROCA Investments records its sixth consecutive year of growth, reaching a market value of 81.64 million euro with an annualized return on investment (IRR) of 29.11%, outperforming typical returns in the private equity market.
· Since launch, ROCA Investments has invested a total of 54 million euro directly in Romanian companies, and a further 55 million euro has been invested by portfolio companies.
· Over six years in business, ROCA Investments has completed 25 transactions and made two significant exits.
· The main focus for 2024 is the development of the third pillar to create the prerequisites for listing on the main market of the BVB, to strengthen the company's position, and reach a market value of 150 million euro.
Bucharest, April 23, 2024 - ROCA Investments, the most dynamic private equity company in Romania, celebrates six years of activity on the local market. The company announces a current valuation before dividend distribution of 81.64 million euro for 2023, marking an increase from the 78.10 million euro reported a year ago. ROCA Investments' equity market value has increased 3.7 times since inception to the end of 2023. Against a difficult year marked by instability and multiple challenges, ROCA Investments generated a portfolio return of 6.63%.
The company owns, as a majority shareholder, two holding companies specialized in strategic industries (construction materials and agriculture) and a portfolio of minority stakes in five Romanian companies.
The combined turnover of the portfolio companies reached 345 million euro in 2023, generating an operating profit of 12 million euro and providing over 2,000 jobs nationwide. Over its six years of activity, ROCA Investments has completed 25 transactions and made two significant exits.
Starting from the stated objective of strengthening the SME area, in 2018 - 2023, the amounts invested by ROCA Investments in Romanian companies reached 54 million euro in direct investments and another 55 million euro in investments made by portfolio companies. These strategically targeted investments have been important catalysts for stimulating growth and strengthening the entrepreneurial environment, demonstrating ROCA's commitment to the sustainable development of the Romanian private sector.
"The year 2023 represented the biggest test of resilience for ROCA Investments, with major challenges in the key areas that make up our portfolio: the building materials industry and agriculture. Like a marathon, this interim result is just a milestone in an endurance race, a result that proves our 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 allows us not only to pursue higher investment returns due to the benefits of compounding, but also to focus on the consolidation and long-term growth of our portfolio companies to create regional champions," said Rudolf Vizental, CEO and co-founder of ROCA Investments.
ROCA Investments applies a unique model in the local private equity market - the buy & build model, with a majority shareholder focus, specializing in the acquisition and transformation of mid-sized entrepreneurial companies. After the acquisition, the company implemented transformational and consolidation strategies, to offer Romanian companies the potential to become regional leaders in the sectors in which they operate, through an approach based on innovation, generation of real added value, and sustainability.
The main objective for 2024 is to strengthen the foundations of the third pillar of development, alongside those specializing in building materials and agriculture. This is an essential step in preparation for listing on the main market of the Bucharest Stock Exchange in 2026, with the target of reaching a market value of 150 million euro, to which two future rounds of capital increases will also contribute.
ROCA Industry, the building materials holding company, was recently admitted to trading on the regulated market of the BVB. It accumulates a portfolio of 9 companies active on the regional market and has a market capitalization of approximately 50 million euro, preparing to become a reference player for the recovery of the Romanian construction industry.
The ROCA AGRI RDF holding company has expanded its portfolio with an NFI dedicated to financing farmers, and at the business level, turnover has increased to 183.7 million euro in 2023, compared to 156.4 million euro in 2022. This growth demonstrates its adaptability and ability to successfully navigate through challenging market conditions.
In addition, ROCA Investments also holds a portfolio of minority stakes in 5 companies that can double their performance in the next two years. This segment has generated notable results, including the accelerated development of Ensys, a company specializing in photovoltaic systems, with an increase in turnover over the previous year, reaching 137 million euro in 2023.
