Case Study
Sample transactions in each area of Setanta Group's business activity are given below.
Real Estate
In the real estate segment, Setanta Group has overseen many transactions based on selected investment strategies:
1. Purchases for capital appreciation
2. Purchase of premises for lease
3. Assignment of contract rights
Average IRR from the above strategies was 20% in 2007-2014 (some companies already existed before the establishment of Setanta S.A.).
Venture Capital
In the Venture Capital segment, the following sample transactions and restructuring projects were completed (via Spartan Capital S.A.):
1. IMAGIS S.A.
December 2010/January 2011
Investment in shares of Imagis S.A.
Imagis S.A. is a Polish company and provider of Geographic Information Systems (GIS) since 1992. It creates digital maps, GPS navigation systems and distributes mobile devices.
July 2011
The entire shareholding in Imagis S.A. was sold to a financial investor.
After seven months since its involvement, Spartan Capital S.A. realised profit of 66%.
2. DM Prospectus S.A./formerly Dom Maklerski DFP sp. z o.o.
May 2012
In May 2012, Spartan Capital S.A. purchased shares of Dom Maklerski DFP Sp. z o.o.
Once the assumptions of restructuring plan had been agreed with the major shareholder, among others, emphasis on sale of services, changing of corporate identity (including change of name and legal form), increase in equity and granting a subordinated loan, we were able to produce stable development of its business.
November 2013
In November 2013 (after 18 months), Spartan Capital S.A. sold the entire shareholding at 80% profit.
3. MODE S.A.
February 2011/December 2012
In February 2011, Spartan Capital S.A. and co-investors made a joint investment in Mode Sp. z o.o. as they saw a potential in products made by that company and opportunities to improve its standing. With support of the existing shareholder, Agencja Rozwoju Pomorza S.A., a rehabilitation plan was implemented, including, among others:
- Emphasis on sales through creating new identity for the company and its products
- Launch of new products
- Granting a short-term working capital loan
- Change in sales department, then change of the Management Board
- Introduction of executive incentive scheme.
The effect of above efforts was the very first net profit for whole year reported at the end of 2012. In 2013, the company dynamically increased its revenue and profit. Management support services have been continued. At the end of 2013, Spartan Capital increased its equity stake in Mode S.A.
4. KANTORINO SP. Z O.O.
December 2012
Investment in shares of Kantorino Sp. z o.o. which operates the online currency exchange service kantoris.pl, was made in December 2012.
The company urgently needed a capital injection and sales boost. Thanks to assistance provided by Spartan Capital S.A., it was able to increase both turnover and it's customer base, and to generate net profit after the first six months of 2013.
Renewable Energy Market (REM)
Seven projects have been pursued in the renewable energy market segment (REM). The Group’s Management Board was involved in sale transactions (due diligence process) of wind and solar photovoltaic farm projects in Poland and Southern Europe.