As part of our latest Expert Interview, we spoke with Miodrag Perović, CEO of Adval Capital – Associated Sponsor for the upcoming SEE Private Equity and M&A Forum [4th, October, Belgrade].
Read on to discover more about Miodrag Perović plans for Adval Capital, as well as his insights on hot spots, investment opportunities and other things to keep an eye out for in 2024.
Q: Tell as a bit more, where do you see Adval Capital’s main opportunities and hot spots in the years to come?
In general, we are sector agnostic, but as we are also a very active investor, we are trying to keep our focus on several key sectors and industries, which we know and understand. By doing so we are able to provide an additional layer of added value to our deals, attract more powerful pipeline and eventually make stronger returns on our investments.
We are generally very optimistic regarding the healthcare sector in the SEE region and we are currently exploring several opportunities in the pharmaceutical industry, but also actively looking at producers of healthcare supplies, equipment, and healthcare service providers. Additionally, we are strongly considering manufacturing companies, especially niche exporters, led by entrepreneurs willing to learn and grow their company to the next level.
Q: What challenges do new private equity funds face in the current investment climate?
Acquisition finance is something that is very limited in developing regions. Rising interest rates are also making that part of the equation even harder to solve now. New funds are pressured to make a successful initial track record, and the general macro situation is not making that job any easier.
Q: Adval Capital invests in small and medium enterprises – what are your next plans?
As a new fund on the market, we are working on several streams. We are just completing our team structure and in parallel pushing for several acquisition targets. Our operational goal is to have a full team ready by the end of this year, and to be fully invested in the next two years.
Q: In addition to delivering financial returns, private equity investors are under increasing pressure to make a real difference in environmental and social issues. What is your take on sustainability and ESG?
We are very much aware and oriented toward the ESG. Actually, one of the reasons we have successfully exited our previous business was due to the good ESG standards we have developed throughout our business operations. Today, as we consider new investment opportunities, ESG related questions are always an important part of our agenda. We are especially addressing environmental risks and mitigation measures, making our investments working for a more sustainable economy.
Q: In today’s private equity market, what is the key to success?
To be patient, and flexible, as much as possible, as we have already approached a buyer market situation. This is also supported by the demographic trends in this region. First generation entrepreneurs and getting closer to their retirements and they are now more than ever willing to discuss and receive support from the family “outsiders”.