Balkan investment management company Axxess Capital has announced a recent investment in Noriel Group, a leading producer of popular games and toys in Romania. The €7 million equity investment was made on behalf of the Balkan Accession Fund (BAF) which is managed by Axxess. The deal gives BAF a 40% stake in Noriel through the purchase of both existing shares and newly issued shares. BAF’s involvement paves the way for Noriel to expand retail operations outside of the local area, and the country, with hopes of making it a major player in the Balkan region.
Noriel Group (www.noriel.ro)
Noriel began seventeen years ago as a small operation founded by George and Mirela Constantinescu to create and distribute children’s educational games. Having begun with their own brand name and a selection of cardboard games, the business was built into a local retail chain providing some of Romania’s most popular titles as well as international brands. Noriel currently operates four stores in Bucharest with expansion to other major cities in the works.
Axxess Capital (www.enterprisecapital.ro)
Axxess Capital is an investment management company established in 1995 to provide investment capital to Romania’s emerging private sector.
With help from the U.S Congress and other European investors Axxess Capital’s first fund, Romanian American Enterprise Fund (RAEF), began with USD 55 million. RAEF has since grown to be a USD 170 million fund and is one of the investors in the €110 million Balkan Accession Fund. Emerging Europe Accession Fund, the third from Axxess is currently in fund raising mode.
Axxess investments are typically in the €3m to €20m range with a life of three to seven years. No specific sectors are targeted, but the firm keys on fragmented industries which would benefit from consolidation.
Axxess maintains offices in Bucharest, New York, and Sofia.
April 3, 2010
Central & Eastern Europe, Investment, Private Equity News, Romania