New Century Holdings (NCH) Capital Inc., the manager of Broadhurst investment fund, the largest fund of its kind on the Romanian market, is intending further investment of $200 million over the next few years and is convinced that the Romanian capital market has the highest potential in Central and Eastern Europe.
Broadhurst already manages more than $200 million, which it has invested in the shares of tens of Romanian companies, many of which it also controls.
"We plan to double our investments in Romania in the next two to four years. We will make investments in both listed and unlisted companies," George Rohr, chairman and founder of NCH Capital, told Ziarul Financiar. The company manages $2.8bn worth of assets worldwide and is present in most CEE countries. Rohr explained that financial services and the consumer goods industry would benefit from the bulk of the fund's investments. "The food industry saw significant growth in all the countries in the region," he said. Broadhurst is the majority shareholder in Vel Pitar, one of the leading players on the milling and bakery market.
Rohr came to Romania together with the head of the investment fund of Yale University, one of the main investors in the Broadhurst fund, in order to search for new investment opportunities. "We have invested more than $20 million through NCH in Romania thus far and are looking for new opportunities. We want to continue investing, but nothing is certain for the time being," said Dean Takahashi, head of Yale University Investment Office, who officially opened yesterday's trading session of the Bucharest Stock Exchange.
The investment fund managed by Yale University owns more than $12bn worth in shares of various companies. The fund had an average profitability rate of 16.8% in the last ten years, placing it in the top 1% of institutional funds.
NCH Capital chairman specified that these investments would depend on the continued improvement in corporate governance and regulations on minority shareholders' rights.
Siminel Andrei, manager of NCH Romania's portfolio, has over recent years been one of the most adamant opponents of capital market legislation with regard to minority shareholders. His disputes with Renault, the majority shareholder in the Dacia carmaker, have forced the Government to modify capital market legislation on two occasions.
vlad.nicolaescu@zf.ro
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