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INVESTMENT STRATEGY
ED Group focuses on making stages of investment expansion in rapidly growing companies that generally have
positive operating cash flow and annual revenue of USD 10 - 100 million at the time of investment.
ED Group seeks to acquire significant minority stakes, above 20%, or controlling stakes in portfolio companies
independently or jointly with co-investors allowing us to take an active role in the strategic development of
such companies and to be represented on their board of directors. The investment size is normally between USD 5
and USD 15 million over the lifetime of the investment.
ED Group invests primarily in emerging companies, which often are still being owned and managed by their
founder entrepreneurs, are in a good position to take advantage of the opportunities presented by the expanding
Ukrainian economy. ED Group invests in such emerging companies with new assets such as brands, distribution networks,
efficient production, customer base, and modern management. We seek to avoid start-up risk and overly regulated
industries, but are opportunistic in terms of industry focus as long as our key investment criteria are present.
A target company's management, market position, size and growth prospects are typically more important than the
sector per se in determining the attractiveness of the opportunity. We believe that media, consumer goods and
services (including financial services), and retail present attractive investment opportunities. We see
interesting prospects in manufacturing, primarily in higher value added import substitution and making supply
chains more efficient. Business services are generally underdeveloped and this is an area where we also foresee
opportunities including logistics, distribution and IT services.
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