WHAT WE DO
Centerra* was formed in 2006 to identify, acquire and develop industrial, financial and real estate assets in the CEE countries. After identifying assets with development potential, Centerra brought international investors to acquire them. These investors gave a management mandate to Centerra, who contributed management expertise and leadership to build an organisation around these assets, thus creating sustainable and valuable businesses.
Between 2006 and 2012 Centerra managed several companies in Romania across four platforms: Flavus, Azureway/Atrox, Zoilos and Jomrita. Each one of these companies was formed to purchase and develop specific industrial, real estate and financial assets identified by Centerra as having significant potential. Centerra built partnerships with various international institutional and family office investors and negotiated the purchase and financing of the assets on their behalf. It then built a team of executives, managers and experts with relevant skills from across Europe to execute the value creation strategy specific to each platform. In aggregate, the companies managed by Centerra represented over €120m invested in assets and development.
Centerra relied on the reputation and track record of its founders to attract investors, institutional and family office investors. At the time, many international investors did not have access to private equity investment opportunities in some countries, especially Romania. Before the financial crisis, the Romanian market was however overheated due to the country’s recent EU accession. Most local investors didn’t appreciate the long-term development value of idle and decrepit industrial assets – former factories built in communist times that were no longer viable on their original business model – and assets that required specialist expertise to develop. Backed by international investors, Centerra took a longer-term view of development and building businesses. Centerra was ultimately able to use the financial crisis as a springboard for recruiting the best people and building significant value in its businesses through careful planning and risk management, and the delivery of high-quality projects.
When not managing the businesses per se, Centerra brings a private equity ownership approach, working for a business’ owner and from within the management team of portfolio companies, in partnership with the CEO and their team. Centerra team members also sit on the board of the managed businesses. Combining experience in private equity investment and hands-on operations, Centerra is responsible and accountable for delivering performance and results. Centerra’s business model is based on alignment of incentives, whereby it invests in the client’s businesses it is involved with, and also receives a management equity stake in these businesses alongside the rest of the management team.
* Centerra is the trade name of Centerra Capital Partners Ltd, Centerra Management Srl and Centerra Management UK LLP