CVI manages the following portfolios:
Private Debt
Risk level:
Medium to low level of investment risk (SRRI risk level of funds between 2 and 3 on a 7-point scale, where 1 is the lowest risk and 7 is the highest)
Expected returns:
3-7% above WIBOR 3M
Investment policy:
Funds investing under the private debt strategy finance the needs of companies in Central Europe. They most often invest in private bond issues that are exclusively directed to the fund. Decisions to invest funds are made after a thorough analysis, negotiation of the individual structure and terms of the transaction, preparation of legal documentation for the transaction and collateral to protect the interests of the fund in the event of underperformance by the company. In addition, the fund manager lowers the risk by diversifying investments across as broad a range of issuers as possible.
Funds:
Noble Fund Private Debt FIZAN – read more
Corporate Debt Rentier FIZ Fund – read more
CVI SICAV SIF S.A. – CVI CEE Direct Lending – read more
CVI CEE Private Debt Fund SICAV RAIF – read more
Private Debt Sectoral – focused
Risk level:
Average level of investment risk (SRRI risk level of funds 3 on a 7-point scale, where 1 is the lowest risk and 7 is the highest)
Expected returns:
4-7% above WIBOR 3M
Investment policy:
Funds investing under the private debt strategy finance the needs of companies in Central Europe. They most often invest in private bond issues that are exclusively directed to the fund. Decisions to invest funds are made after a thorough analysis, negotiation of the individual structure and terms of the transaction, preparation of legal documentation for the transaction and collateral to protect the interests of the fund in the event of underperformance by the company. In addition, the fund manager lowers the risk by diversifying investments across as broad a range of issuers as possible within a particular sector, to which the fund is dedicated.
Funds:
CVI IPOPEMA RE Debt FIZAN – read more
IPOPEMA Benefit 3 FIZAN – read more
Mezzanine funds
Risk level:
Average risk class of 4 out of 7 on the SRRI’s 7-point scale. This means that potential losses in future performance are rated as medium and poor market conditions could affect the funds’ liquidity.
Expected returns:
7-10% above WIBOR 3M
Investment policy:
Mezzanine funds finance riskier debt projects that can be accompanied by an equity component. As mezzanine funds are riskier than traditional private debt funds, the expected rate of return is usually higher and volatility is also higher with this type of instrument. At the same time, more security is expected compared to an equity investment as mezzanine investors have priority in repayment over equity and often also benefit from collateral, which further improves their position as creditors. Companies opt for mezzanine financing as it allows them to avoid dilution of ownership, or even loss of control, compared to a typical private equity investment.
Funds:
Noble Fund Mezzanine FIZAN – read more
CVI SICAV SIF S.A. – CVI CEE Junior Debt – read more
