Freshly rebranded Evergent Investments seeks alpha in Romania's economy by increasing private equity investments

Romanian investment company Evergent Investments (EVER), the former SIF Moldova (SIF2), plans to increase its investments in private equity in the following years, aiming to continue delivering higher returns for investors than the market average. The company also aims to draw new money from investors on the local capital market to support its investment strategy.

In the last ten years, the company has obtained an average annual return of 9.23%, 1.77 percentage points higher compared to the average return of the equity-focused investment funds in Romania. Its goal in the following years is to continue generating "alpha," which represents a surplus to the average performance of the local equity fund market.

"In the last ten years, we have generated an average annual rate of value growth for our shareholders of 13.2%, including the dividends distributed to them and the increase in assets behind the shares they hold. We have set the goal to be leaders on the Romanian capital market and generate benefits for all stakeholders," said Evergen Investments general manager Claudiu Doros in a press conference.

"Evergent Investments' strategy has been primarily aimed at increasing the performance of the listed portfolio, with its two pillars - financial-banking and energy-industrial, which has become the main source of profit and resources for new investments. With the backing from the current Board of Directors, and taking advantage of the recognized expertise and experience of its members, we have started and continue to courageously invest in private equity, especially agribusiness and real estate," Doros explained.

In the agribusiness sector, Evergent Investments currently owns one of the biggest blueberry farms in Romania, with close to 100 hectares cultivated, which it plans to increase to 200 hectares in the following period and, later, to 400 hectares. The farm produces blueberries that are sold mostly abroad, in countries such as the UK and Germany, but has also signed partnerships with local retailers for distribution in Romania.

In the real estate sector, the company focuses mainly on the residential segment. Last year, it completed a 6-block project in Bucharest's Baba Novac area and started a new project – Atria Urban Resort, located in northwestern Bucharest (Soseaua Chitilei). The company is also preparing to launch a new real estate project in Iasi, the second-biggest city in Romania, and is working on the permits for other projects to be launched in the future.

"We plan to increase the private equity investments towards 40% of our assets targeting projects that can generate returns of over 15% with an average risk profile," said Claudiu Doros.

Evergent Investments is also looking at other sectors for private equity investments, mainly those that could benefit most from the EU's post-pandemic recovery funds.