Investment group Penta is expanding its financing strategy by establishing two new investment funds – Penta Equity Fund SICAV and Penta Real Estate Fund SICAV. Having completed the registration process with the Czech National Bank, thee funds can begin accepting initial deposits in December.
“We’re establishing these funds to accelerate our growth,” says Penta co-founder Marek Dospiva. “While we have top-tier management capable of driving market expansion, capital limitations remain our primary constraint, despite reinvesting most of our profits annually.”
In 2023, Penta invested €900 million, but the group sees this as falling far short of its needs. By itself, the pharmacy chain Dr. Max needs roughly that much just for its its planned Italian market expansion.
Penta Equity Fund SICAV will will offer investors the same diversification strategy as Penta’s partners. Meanwhile, the Penta Real Estate Fund SICAV will focus on premium real estate investments, including Prague’s Masaryčka project and other residential and office developments in Prague and Bratislava. The developer plans to expand into a Western Europe in the coming years.
Both of the funds are targeting qualified investors, requiring minimum investments of 1 million CZK, or €50,000 in Slovakia. CODYA will serve as the fund administrator in the Czech Republic.
Penta has achieved 15% annual returns in the past, but investors will have to gauge for themselves whether it can achieve this going forward. The funds will offer monthly valuations at fair value and order settlement, with both EUR and CZK investment options and active currency risk management.
The equity fund will collect a 20% performance fee for everything above 8% annual returns, while the Real Estate Fund charges 30% on anything over 10%.
Distribution channels include Privatbanka (owned by Penta), Codya and Conseq Investment Management. A special retail real estate fund is also planned, according to Tomáš Kálal, who leads Penta’s investment fund preparations. The management fee is set at 1.6% p.a. Investments will have 3 and 4-year lock-up period.
