The story of Pale Fire Capital has been written since 2015, with four founding members (see photos). Dušan Šenkypl specializes in setting up effective organizational structures, sales teams and product development, David Holý creates marketing strategies for portfolio companies, Jan Barta is dedicated to finding and analysing investment opportunities, and Petr Krajíček deals primarily with accounting and tax aspects and company and transaction administration. They have a very interesting history behind them: they have built a number of strong companies such as NetBrokers Holding, the market leader in comparison platforms, which includes ePojisteni.cz, SrovnejTo, Superpoistenie.sk or Tarifomat, or the lead-gen company Elephant Orchestra. 

The Group’s portfolio now includes, among others, the European leader in online furniture and home decor search with operations in nine European countries, Favi.cz, whose revenues grew at an average annual rate of 48% between 2018 and 2020, the auction portal Aukro.cz, which now has over 4.5 million registered users and sold 3 billion CZK worth of goods last year, the indoor cycling and running app Rouvy, the most widely used Czech solution for municipal communication with citizens, Mobilní rozhlas, the technology company Semantic Visions, which focuses on intelligent software for news content analysis, UptimeRobot, a global web monitoring service used by over 1.3 million users, and the online farmer’s marketplace SCUK.cz and many others.

PFC partners provide strategic insight and financial or marketing support to over 20 companies. The goal is to lift portfolio value and build billion-dollar companies. They actively work with their founders, help them expand locally and internationally, and support technological innovation. They give them the opportunity to grow, learn and together strengthen the development of the e-commerce and technology field.

PFC partners provide strategic insight and financial or marketing support to over 20 companies. The goal is to lift portfolio value and build billion-dollar companies. They actively work with their founders, help them expand locally and internationally, and support technological innovation. They give them the opportunity to grow, learn alongside them and together strengthen the development of the e-commerce and technology field.

The year-on-year growth in the share of e-commerce and the importance of its contribution to the entire Czech economy is confirmed by independent authorities such as APEK or the Czech Statistical Office. For investors, e-commerce is as interesting as promising technology titles. PFC has been investing in this area for several years and has now decided to issue a five-year bond that will allow even smaller investors to participate in its success. “We are looking for investors who offer a wealth of experience, the ability to analyse trends and bring interdisciplinary know-how. The issue will be on the market on 12 October. The bonds will be priced at a fixed interest rate of 5.75% p.a. and will mature in 2026 and will be publicly traded on the Prague Stock Exchange,” comments Jan Barta, partner at PFC.

The mandate to place the medium-term senior bonds was obtained by J&T Banka, which immediately included them in its offer to investors. “The bonds with a nominal value of 10,000 CZK are intended for investors who believe in the development of e-commerce and technology,” explains Martin Kopecký from J&T. Detailed information on the bonds with the procedure on how to invest directly on J&T Bank’s website here.

The PFC Group has invested over 1.1 billion CZK in the portfolio by the end of 2020 from its own shareholders’ funds. This brings the value of principal borrowings received from shareholders to date to 1.54 billion CZK, with a commitment to raise a further 200 million CZK.  The bonds will be issued by the Group in a total amount of up to 500,000,000 CZK with the possibility of increasing up to 750,000,000 CZK, each bond is issued in a nominal value of 10,000 CZK. PFC’s portfolio shows positive EBITDA (earnings before interest, taxes and depreciation and amortisation) even in growth mode, has a clear history of stability. The bonds are secured by a pledge of 100% of the shares in the guarantor, and the partners’ own investments are junior to the bonds. Further details on the bonds here.

According to the ČNB, annual inflation reached 4.1% in August, a 13 year high. If investors want to protect their portfolio, investing in the new PALE F. F. 5.75/26 bond offers an interesting opportunity.

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Media contact: Patricia Šedivá, PFC Group Communications Director, patricie@palefirecapital.com