17.02.2023
SILVERLINE INVESTS BGN 100 MILLION IN BULGARIAN COMPANIES UNTIL THE END OF 2023.
The fund is a reliable source of long-term capital for growth regardless of the economic environment
After the popularity of investments in start-up enterprises, opportunities for financing from a professional investment fund have also been given to companies that have reached a stage of maturity and with ambitions for rapid growth. The Silverline Partners fund already makes direct investments in small and medium-sized Bulgarian companies, which through the appropriate mix of equity and debt financing could realize their potential and growth plans.
Investment goals
The fund invests as a priority in vital industries for the economy with growth potential and ambitious entrepreneurs with proven business models. With these investments, the Silverline team aims to support the establishment of Bulgarian and regional leaders in various industries, helping companies overcome growth challenges and develop their full potential.
The financing aims to support the growth of companies with investments in new geographical areas, new productions and product lines or the acquisition of competitors to establish a leading market position.
The investment aims to purchase new machinery and equipment, establish bases and offices in new geographical areas, attract specialists for business growth, invest in sales and marketing and provide working capital. Part of the invested capital can be used to buy shares from existing partners.
Companies from traditional sectors including manufacturing, trade, logistics, education, healthcare, engineering and others that are export-oriented and have reached a mature stage of development are considered. The fund supports companies with regional and global potential that are looking for financing to implement a business plan and expand their activities.
The investment in each enterprise is from 5 million to 14 million BGN. The investment period is usually from 3 to 8 years depending on the needs of each company.
Criteria
Silverline invests in companies that have a validated business model with solid fundamentals, leadership potential, sustainable competitive advantage and a plan for revenue and profit growth.
An important condition is that the companies are small and medium-sized enterprises (SMEs) registered in Bulgaria.
Who is who
Silverline Partners is a mezzanine/growth fund. This is the last instrument from the Fund's portfolio of funds for equity and quasi-equity investments, as such it was created for the first time in Bulgaria with public resources. The funds for it are provided under the Operational Program "Innovations and Competitiveness 2014-2020", co-financed by the European Fund for Regional Development, as well as by private investors. This instrument fills a market vacuum for the financing of more mature, but equally innovative and dynamic companies, which are characteristic of fund portfolios covering the earlier phase of company development.
By the end of 2023, the fund will support at least 10 small and medium-sized enterprises with investments in the amount of BGN 5 to 14 million, and at least half of the resource will be invested in the form of mezzanine financing.
Financial instruments
Silverline provides alternative-to-bank financing solutions that include mezzanine debt, convertible loans and equity, as well as combinations thereof, providing flexibility in structuring any investment.
With an investment in the form of equity capital, the fund participates in an increase in the company's capital and becomes a shareholder in it. These funds do not have to be returned and the company can use them long-term for the implementation of its business plans. After a period of 3 to 5 years, the fund must exit the investment by selling the shares it owns. A buyer of the shares is usually a strategic investor - a large regional or international company, another fund or, in rarer cases, a sale of the shares through a stock exchange. In many cases, at this point, the company's founder and other shareholders also sell their shares and cash in on their profits from the well-developed business. The goal of the fund is to get a price that is about 3 times the size of the investment made. The other shareholders receive the same profit.
A mezzanine is a form of hybrid investment between equity and debt financing. It enables enterprises to attract risk financing from a professional investor, without necessarily leading to the transfer of a significant share of their property to the new investor. The company receives a venture loan with minimal collateral and a flexible repayment structure to allow it to meet growth targets without incurring principal repayments in the early years, providing free funds to operate the business.
Usually, with mezzanine financing, the term of the transaction is longer compared to bank investment loans, and depending on the specific needs, different terms can be negotiated.
An alternative
Silverline financing tools are an alternative to bank financing that brings more benefits to entrepreneurs and lower risk.
Given the macroeconomic environment, alternative financial instruments of funds are the best and safest source of long-term capital for growth in recessionary conditions. With banks' liquidity diminishing, Silverline's financial instruments provide more opportunities for companies to improve their industry positions in a riskier market environment.
Individual approach
Silverline Capital offers individual investment solutions for each company depending on the business model, industry specifics, financial situation and growth strategy.
The focus is on leading Bulgarian companies operating in various economic sectors. Each company's needs are different, so each investment opportunity is considered individually to offer the best financial solution.
The fund works in partnership with proven entrepreneurs and leading companies with strong competitive advantages and a sustainable business model that have the potential to take a leadership position in their market segments. Applying a personal approach and a methodical investment process, the aspiration is to ensure long-term success and high returns for the companies, entrepreneurs and partners with whom Silverline works.
The team as added value
Silverline Capital was created by investors with significant financial, operational and industrial experience, including Evgeni Angelov, Nikola Dunchev, Diana Aladzova, Lloyd Schultz, Ralitsa Again-Guri. The team has professional expertise in strategic management and venture investing.
Silverline's approach, based on practical experience in managing small, medium and large enterprises in Central and Eastern Europe, the expertise of the team in combination with a validated investment methodology and access to an international partner network give the fund a unique advantage in supporting companies, helping them overcome challenges and develop to their full potential.
The diverse profile of the team allows the fund to contribute to the development of companies both in the direction of strategic planning and in the implementation of acquisitions and the construction of a corporate structure that can take on the expected growth of the business.
You can contact the fund in the following ways:
office@silverlinecapital.net
