Nexus PE Makes First Investment in Promotehna

Nexus ALPHA, the initial fund of Croatian firm Nexus Private Equity, has announced the completion of its first investment; expansion capital provided to Promotehna d.o.o. The new capital will allow the automotive equipment and products distributor expand its business while also strengthening its market position.

Nexus believes the current economic crisis will increase the demand for Promotehna’s products which promote repair and ownership of current vehicles in place of purchasing new ones. Financial terms of the deal have not been disclosed.

Promotehna d.o.o. (www.promotehna.hr)
Founded in 1992, Promotehna is a large distributor for well-known manufacturers of tools and automotive service equipment in Croatia. They also distribute specialized equipment to the automotive industry including diagnostic equipment, car lifts, and machining equipment. The company plans to further expand their product list in the near future.

In October of 2008, with increased demand for its products, the company established Promotehna Kosovo, a joint venture with Valve-lub-a, in the city of Pristina. Promotehna’s headquarters are located in Zagreb.

Nexus Private Equity Partners (www.nexus-pe.hr)
Nexus Private Equity Partners, based in Zagreb, Croatia, was founded in 2008 and will focus its investments on the Croatian and greater Southeastern Europe markets. Nexus Private Equity Partners has targeted three specific business segments for private equity and venture capital financing: project-based real estate development; equity investments in medium to large organizations undertaking expansion; and seed financing for entrepreneurs and start-up ventures with high growth potential.

Nexus Private Equity Partners originally anticipated raising EUR 30 million for its ALPHA fund, with funding remaining open from September 8th to October 7th, 2008. Nexus ALPHA is currently the largest private equity fund in Croatia, and a second round of fund raising will be opened in 2009 with the goal of increasing the size of the fund to EUR 50 million. Of the funds raised for Nexus ALPHA, 12% were contributed by institutional investors, 18% were contributed by high net-worth individuals, and 70% were contributed by corporate investors.

Nexus Private Equity Partners is currently analyzing investment opportunities for its ALPHA fund and has not yet publicly announced any capital commitments.