Da Vinci Private Equity Fund II (Fund II)

Fund II is the second private equity fund managed by Da Vinci Capital Management. It invests in high-growth private companies in CEE countries. The fund targets gross returns of over 30% IRR/3x cash multiple.  Fund II has recently closed for new limited partner subscriptions but is actively investing in new portfolio companies.
Vehicle: Guernsey limited partnership.
Industry focus: financial infrastructure and payment processing, business and IT services, consumer services.
Degree of involvement in portfolio companies: ranging from active monitoring (i.e. via Board of Directors) to day-to-day management.
Value to portfolio companies: corporate and financial strategy improvement; M&A advisory; optimization of human resources, investor relations, and corporate governance; client generation.

Fund II expects to invest in the following sectors positioned with sustainable underlying growth drivers for long-term growth:

Financial Infrastructure and Payment Processing
Financial markets in CEE are the most developed among the emerging markets, yet they still lag behind developed economies in the sophistication and maturity of their financial infrastructure. As they become increasingly integrated into global capital markets, these markets, which are backed by strong government support, are likely to provide significant investment opportunities.

Business and IT Services
CEE countries have deep technical talent priced competitively vis-à-vis that in developed economies, which positions them as attractive locations for the provision of business and IT services to global customers. Additionally, CEE economy is expected to sustain growing demand for sophisticated business and IT services. 

Consumer Services
CEE countries are currently experiencing a rapid expansion of their consumer sectors due to increasing wages and strong spending habits. The expansion of this new consumer class is likely to provide significant investment opportunities in companies providing consumer services, such as online payment systems and insurance providers.