Europe Virgin Fund

The Europe Virgin Fund is a regional private equity fund sponsored by Dragon Capital, with $57 million of committed capital from Dragon Capital, the European Bank for Reconstruction and Development, the Swiss Investment Fund for Emerging Markets, the Black Sea Trade and Development Bank and other limited partners. The Fund provides equity financing to selected private sector businesses with primary operations in Ukraine, Belarus and Moldova, in particular, in fast-moving consumer goods, retail, industrial, telecom, media, technology, pharmaceuticals, construction materials and financial services sectors.

In June 2011, the Fund acquired a majority stake in Ukraine’s leading manufacturer of hygiene products – Lutsk-based VGP (TM ‘Ruta’). The company is a major producer of toilet paper, paper towels, napkins and hankies located in Lutsk, western Ukraine. VGP has approximately 20% market share of tissue paper products in Ukraine, enjoys strong market positions in Belarus, Kazakhstan, Moldova, Russia and other CIS countries.

In October 2011, the Fund took a controlling stake in one of Ukraine’s leading out-of-home advertising companies – Prime Group. The company was established in 2009, but quickly gained a prominent market position in Kyiv, the capital city of Ukraine. Thanks to the Fund’s capital, Prime Group expanded to all regions of Ukraine and now manages more than 9,000 advertising faces across the country.

In January 2013, the Fund completed formation of a 50/50 joint venture with Ucrafarma S.A., a Spanish pharmaceutical company. The partners have united their forces in Lux PHARMA Participations SA, a Luxembourg-based holding company, with Ucrafarma transferring various pharmaceutical assets including its 95% stake in Sperco Ukraine LLC and the Fund providing development capital. Sperco is one of the top 10 pharmaceutical manufacturers in Ukraine, with a portfolio of 20 generic products. The company manufactures and markets lifestyle OTC and Rx pharmaceuticals in therapeutic areas such as cough and cold, women’s health, sedatives, pediatrics, dermatology and antibiotics.

In December 2013, the Fund acquired a controlling stake in Portmone.com, a leading online payments system in Ukraine. Since 2002, Portmone.com has been an important and successful player in Ukraine’s e-commerce market, which is currently demonstrating booming growth. The company has established itself as the largest independent online payments system in Ukraine, serving over a million of active users.

In May 2015, the Fund completed its investment in VENBEST Group, a leading private security services market operator in Ukraine. Founded in 1991, today VENBEST Group is the largest private operator in the market of security services in Ukraine, serving more than 25,000 customers. EVF strongly believes that VENBEST is positioned for further growth due to the considerable growth potential of the respective market in Ukraine and the anticipated sector consolidation trend.

 

Key Characteristics of the Fund


Fund: Europe Virgin Fund L.P.
Fund type: Private Equity Fund

Fund size: $57m
Key participants: Dragon Capital, EBRD, Swiss Investment Fund for Emerging Markets (SIFEM), Black Sea Trade and Development Bank

Regional focus: Ukraine, Belarus, Moldova
Strategy: private sector medium-sized businesses with high growth potential
Industry focus: FMCG, retail, industrial, telecom, media, technology, pharmaceuticals, construction materials and financial services

Investment style: active management
Investment horizon: medium to long-term

General partner: Dragon Private Equity Partners Ltd.
Fund domicile: Isle of Man
Auditor: KPMG
Eligible investors: sophisticated investors


Europe Virgin Fund Announcements

 

12.10.2015 - Former Google Executive Joins Ukraine’s Leading PSP Portmone.com

14.05.2015 - Europe Virgin Fund invests in VENBEST

16.12.2013 – Europe Virgin Fund invests in online payments system Portmone.com

31.01.2013 – Europe Virgin Fund Invests in Pharmaceutical Company Sperco Ukraine

03.11.2011 – EVF Invests in Prime Group and Welcomes BSTDB as a New Investor

06.07.2011 – Europe Virgin Fund Acquires Controlling Stake in Ukraine’s Leading Hygiene Products Manufacturer (TM ‘Ruta’)

31.08.2010 – Dragon Capital Raises $45 Million in the First Closing of Europe Virgin Fund