The MCI strategy is focused on investments in the digital economy in the area of buyout and debt (digital private equity, private debt). Historically, the Group has also been involved in funds dedicated to the areas of Growth and Venture Capital – these funds do not carry out new investments, and are focusing on asset value creation and exit preparations.
Internet pure players, from the areas such as: digital media, ecommerce, marketplace, fintech, IoT, SaaS, cloud and entertainment.
MCI considers investments in companies that operate in IT infrastructure market, such as data centers and distributors.
MCI supports companies that having achieved a leading position in the traditional economy, have ambitions to climb to the European and global level through the processes of digitization.
Preferred sectors: TMT / retail / fintech / healthcare / services
Preferred geography: CEE (70%), Western Europe (20%), Israel and rest of Europe (10%)
For detailed strategy of our Funds, visit section: Our Investments
The fund selects companies for investment. These include both projects identified by the fund or our network of advisers and those submitted by the entrepreneurs themselves. Subsequently, the list of potential investment projects is narrowed down to “eligible investment projects”, while selected companies are subject to further detailed examination (due diligence). At this stage, the fund agrees with the selected companies on a preliminary plan for further action and basic transaction terms (termsheet).
The fund carries out detailed legal, financial and business assessment of the company (due diligence) considered for the investment. In the case of technology companies, this will also include an analysis of the technological solutions introduced as part of the product offered. If the result of these assessments is positive, the fund will agree with the company and its owners on the detailed framework and terms of the proposed investment in the company – to be included in a relevant investment contract.
The findings of the company audit and the recommendations issued by the investment team led by the Fund Manager are submitted to the fund’s Investment Committee for approval. The Investment Committee decides on whether to become involved in the investment, its investment value and key terms. Final terms of the agreement with the selected company or its owners are also negotiated at this stage. Following the execution of the investment contract and the waiver of conditions precedent (if any), the fund initiates company monitoring and corporate governance procedures.
The company value is created through ongoing management, corporate governance and cooperation with Company Boards. Once the company achieves the value required by the fund to realise the expected rate of return, the fund initiates the disinvestment procedure (exit from the investment). Disinvestment is usually achieved by reselling the company’s shares or stocks to a strategic industry investor, financial investors (including other VC/PE funds), private investors, the company board, or by admitting the company to official stock-exchange listing (IPO).