Bulgaria Could Be the Promised Land for the New Čičak Fund

Just one month after opening its office in Romania, Provectus Capital Partners (PVC) has done the same in Bulgaria, which could prove to be a much more potent market than Romania, a true promised land for an investor like the leading Croatian private equity (PE) fund, given its strong focus on investments in the consolidation of private healthcare.

Unlike Romania, where the private healthcare sector is experiencing continuous consolidation, led by several major players (MedLife, Regina Maria, Medicover), Bulgaria has yet to see prominent consolidators, so PVC is practically entering this already quite grown market first or among the first.

There are, however, reasons why no one has yet chosen the private healthcare sector in Bulgaria as a target for acquisition. The structure of private healthcare in that country is dominated by smaller general hospitals (specialized hospitals are still only publicly owned) and clinics, or institutions that primarily offer primary healthcare services, which also means that there are not many sensational profits to be found. And where there are no profits, consequently, there is no investment in modernization and expansion.

But this is PVC’s opportunity as it is currently establishing its PE fund, Provectus SEE Fund II, into which the EBRD will also invest 25 million euros.

– As part of the first fund, we invested over 150 million euros in the markets of Croatia and Slovenia and demonstrated that we know how to identify opportunities and create added value in the companies we invest in. With the new fund, we will expand our activities to a broader region of Southeast Europe, and building a physical presence through a network of local offices is important to us because a partnership relationship and transparent and continuous communication with the founders of the companies we invest in are the foundations of our successful business approach – ​stated Igor Čičak, CEO and main partner of PCP.