„Întotdeauna ne-am poziționat nu doar ca investitori, ci ca parteneri în adevăratul sens al cuvântului, creând legături solide cu companiile în care investim. Convingerea noastră fundamentală a fost întotdeauna că această abordare de parteneriat servește cel mai bine intereselor companiilor din portofoliul nostru și se aliniază perfect cu obiectivul de a oferi randamente optime acționarilor noștri”, spune Andrei Gemeneanu, Managing Partner al Morphosis Capital.
The fund, which made its first investment in 2019, completed three successful exits in 2022 and 2023, corresponding to years 4 and 5 of the fund. These include a full exit from Dr. Leahu Dental Clinics to Regina Maria and two partial exits from Medima Health and EMI, executed through strategic partnerships with international private equity funds, Integral Venture Partners, and Innova Capital.
The exits from EMI, Dr. Leahu Dental Clinics and Medima Health have each yielded IRRs of over 30%. At present, Morphosis Capital has significant holdings in DocProcess, Stay Fit Gym and Cronos Med as well as minority stakes in EMI and Medima Health, remaining actively involved in the management of these entities.
Following the three exits, Morphosis Capital’s DPI (Distribution to Paid-In capital) stands at 0.35. This key metric for the private equity industry represents the return ratio of funds to investors. This is a significant achievement considering that just a fraction of the portfolio has been fully exited. Compared to the private equity industry, this performance is in line with top-tier growth global funds initiated in 2018, surpassing those launched alongside Morphosis Capital in 2019.
“Reaching an IRR of 30% from just half of our portfolio underscores our strategy’s effectiveness. Furthermore, our DPI of 0.35, even after just one full and two partial exits, proves our commitment to ensuring liquidity for our investors. These results show our ability to yield returns comparable to top-tier growth funds and confirm the direction towards which we are steering Morphosis Capital,” stated Andrei Gemeneanu, Managing Partner at Morphosis Capital.
On top of high–level DPI, through the two partial exits, Morphosis Capital raised over EUR20 million in additional growth capital for Medima and EMI, which will support the further expansion of these two companies. For Medima, the growth will come from opening new clinics across Romania, and for EMI – through bolt-on acquisitions across the region.
Morphosis Capital Fund I retains provisions for one more investment in 2023. The investment could be either an additional investment in one of the portfolio companies or a new investment in the sectors of key interest. The final decision in this regard will be made depending on market opportunities.
In 2022, Morphosis Capital Fund I reported a 42% combined increase in turnover of its portfolio companies compared to 2021, and a 106% growth of EBITDA versus the previous year. This positive trend continued in 2023; at the end of the first quarter of 2023, Morphosis Capital portfolio companies recorded revenue growth of 30% and an EBITDA increase of 29%. This strong performance contributed to a 60% appreciation in the overall gross portfolio value to date.
Morphosis Capital Cooperatief UA is a private equity fund with EUR50 million subscribed capital. Established in December 2018 by Romanian entrepreneurs Simona Gemeneanu, Gabriela Dumitru, Dragos Petre and Andrei Gemeneanu, the fund aims to contribute to the development and makeover of Romanian small- and medium-sized enterprises (SMEs).