Swedish-based Oresa Ventures investment fund, which last summer acquired Romania's biggest loan broker, Kiwi Finance, could sell the business as soon as it reaches 1bn euros in financing handled.
At the end of 2007, Kiwi Finance (formerly Gemini Capital Consult) handled loans worth 292m euros after four years on the market.
"We will consider exiting Kiwi Finance when the volume of loans brokered reaches 1bn euros," Cornel Marian, investment manager of Oresa Ventures Romania, told ZF.
Last year, the broker managed to sell loans worth 162m euros on behalf of banks, up 170% on 2006.
For 2008, the company expects to handle loans worth 300m euros, a total financing volume worth around 600m euros. At this rate, the 1bn-euro threshold could be realised by 2009-2010.
"We'll sell either to a strategic investor, or to another private investment fund," said Marian, without specifying the sum he plans to raise via this exit.
The Swedish fund took over the company in a deal worth 3m euros that entailed an equity swap and share capital increase. However, the deal's detailed structure has not been revealed by either of the two parties. The fund bought the stakes of two of the firm's founders, Adrian Stanciu and Constantin Dumitrescu, former managers at Xerox. Anca Bidian retained her shares, as well as the position of general manager at the broker.
Marian would not comment on when the exit might take place, but specified that it could occur within 5 or 6 years after the deal is finalised, or even later.
"We want to turn Kiwi Finance into the biggest loan broker and financial consultancy in Romania. To do this, we are willing to invest significant sums in the company's development," Marian added.
This year, investments could reach 3m euros, with the broker in the full process of rebranding, whilst the territorial network will be developed in parallel. Currently, Kiwi has 5 subsidiaries, but will open another one in Slatina. The broker will also launch operations on the Spanish market this year, and targets Romanian workers.
In 2007, Oresa Ventures invested around 10m euros to purchase domestic firms and this year expects approximately another three new acquisitions to be completed, with the value of investments in Romania to rise significantly.
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