Prague, August 2022 – Investment company Pale Fire Capital (PFC) has set itself an ambitious target for 2021 and has significantly strengthened. Consolidated turnover reached 1.575 billion CZK. The volume of assets grew to 3.762 billion. The team was expanded with senior reinforcements. PFC expanded its portfolio with significant investments and successfully underwrote bonds worth 750 million CZK for new investments.
The year 2021 was a successful one for us and full of important changes. We have set an ambition to manage at least 20 billion CZK in assets by 2025 and to become a strong financial group, combining technology private equity and hedge funds operating in Western capital markets. With 1.4 billion CZK under management in 2020, we have realigned the entire organisation and opened new positions to deliver on our ambition.
Last year, we transformed ourselves from primarily a venture capital company into a technology private equity company with the intention of acquiring a strong stake and influence in high-growth technology companies, giving them a second wind, courage, experience and the ability to grow into billion-dollar valuations. We increased our stake in Aukro and brought in a new CEO, invested in five new companies in the Czech Republic and abroad, including our entry into Groupon through the stock markets (which was the forerunner of Slevomat in the US).
Our new ambition provides great opportunities for quality talent, which has already partially completed the PFC team and the company’s portfolio. But we are constantly looking for capable, confident and experienced professionals with a desire to build a global business on a solid foundation to help us achieve our ambition. Not only do we now offer the opportunity to grow with us, but we also offer colleagues in the PFC team a new employee investment program with the opportunity to participate in PFC’s success by investing with appreciation based on portfolio growth.
We have also significantly strengthened the business, with our consolidated turnover growing over 60% year-on-year to reach 1.575 billion CZK. Asset size grew to 3.762 billion from 1.436 billion in 2020. We invested higher hundreds of millions CZK to strengthen our stake in existing businesses and to enter new businesses. We have also successfully underwritten an increased bond issue of 750 million and have received important support from the market for further growth, which we are grateful for.
Key investments last year included the number two insurance comparison company Mubi in Poland and the world number two indoor cycling training company Rouvy, where we are looking to strengthen their positions in their largest markets and accelerate their international expansion. We also have big ambitions with the online marketplace Aukro, with which we plan to expand into other countries. We have a similar ambition with Munipolis, which has started its expansion into Germany in 2021, with other countries soon to follow.
By investing in the Western stock markets, we are building a second strong competence of our group, besides private equity, which also helps us to find interesting business opportunities for the private equity part. In 2021, we kicked off our entry into Groupon, where we see a growth opportunity as part of the post-covid recovery, especially if there is also a weakening of economic growth or a recession in which consumers become significantly more price-sensitive.
We recognize that there is a responsibility associated with success and it is part of our philosophy to give back to the community. That’s why in 2021, we supported non-profit organizations, that are doing great work and whose mission is close to us, with $45 mil. CZK.
In 2022, we are continuing the trend we have set. The results so far motivate us to seek greater opportunities in the world. If you have the experience, ambition and courage to become part of our team, please email us at jsme@palefire.com.
Full results are available here.