Generally, unfamiliarity with EM markets is what drives investor skepticism and often results in their unwillingness to explore deals. Anticipation that the US Federal Reserve will taper off its quantitative easing is compounding investor apprehension.
New York, NY (PRWEB) October 31, 2013
Hussar & Co., an investment bank headquartered in New York, announced today the launching of its emerging markets focused merchant banking fund trading under Origination & Co-Investment Catalyst Fund (OCi Catalyst Fund, for short), capitalizing on opportunities in Central Eastern Europe and the CIS region. With its expertise in emerging and frontier markets, the firm will identify corporate finance opportunities across a wide range of industries. These sectors include, but are not limited to, agriculture, metals & mining, financial services, energy, and retail. The Hussar team will use several decades’ worth of regional and cross-sector experience to spur investment in regions that are often overlooked by traditional private equity funds, family offices, hedge funds, and the like.
According to Thomas PB Frater, Managing Director at Hussar & Co., “We’ve worked in emerging markets for years and believe that places like Ukraine and Kazakhstan can indeed become the next Polands of the world.” A number of successful businesses across these markets have mandated Hussar & Co. to raise debt and equity and to advise them on mergers and acquisitions. These companies are tired of investor meetings beginning and ending with discussions about country specific risk. “Generally, unfamiliarity with EM markets is what drives investor skepticism and often results in their unwillingness to explore deals. Today, however, anticipation that the US Federal Reserve will taper off its quantitative easing is compounding investor apprehension,” said Mr. Frater. Additionally, investors who were once comfortable with and excited by the emerging and frontier markets are selling off their bonds. Global currencies have started to lose their value and the already high cost of capital is sky rocketing. Frater emphasizes the fact that his “team sees a need in the marketplace and has establishing the OCi Catalyst Fund in order to meet that need.”
Hussar & Co. is working alongside development finance institutions (DFIs) to bring capital to corporate finance projects across its regions of focus. In so doing, Hussar & Co. hopes to increase awareness about emerging and frontier markets and encourage investor activity in these zones. “We hope that our skin-in-the-game approach helps alleviate investors’ apprehensions. Yes, these markets are more-or-less uncharted territories for institutional investors. However, that’s the beauty of them. We advise companies that are run by exceptional management teams working towards fulfilling unmet needs. These companies generate high margins, are fully transparent, and offer exceptionally high returns. We need investors to focus more on the positive aspects of the CIS and CEE,” explained Mr. Frater.
About Hussar & Co.
Hussar & Co. is a New York based boutique investment bank delivering advisory services in the areas of corporate finance, mergers & acquisitions and capital formation to emerging Europe. While our focus remains in Central and Eastern Europe (CEE) and the Commonwealth of Independent States (CIS), our partners’ expertise constitutes a truly global presence beyond the borders of our mandates.
Some of the most resilient and versatile companies in the world reside in the CEE and CIS regions, many of which have persevered throughout the global financial crisis, avoided EU contagion, organically achieving success, and are poised for expansion in the coming years. Hussar and Co. delivers a unique bespoke advisory service, developing a strong understanding and connection with its clients that lasts well beyond the capital raising process.
For more information, please visit: http://www.hussarco.com.