One of Eastern Europe's Richest Families Seeks to Diversify Fortune
(Bloomberg) -- One of the richest families in eastern Europe is looking to diversify from the company that's made its fortune in recent years.
The Jurczyk clan is seeking new asset classes and geographies following a roughly 300% return in the shares of Mangata Holding SA, one of Poland's biggest industrial conglomerates. After Covid-19 hurt sales and with the war in nearby Ukraine, the firm that manages the roughly $150 million fortune of the family and two long-time Mangata business partners is speeding up plans to diversify.
“These events have served as rocket fuel for our thinking,” Adrian Nowak, 30, chief investment officer of BTQ Family Office, said in a recent Zoom interview from Poland.
Mangata, one of BTQ's major assets, withdrew its 2022 forecast last month. The company, whose shares climbed 24% in 2021 but are down 4% this year, cited uncertainty stemming from the war and warned of volatile energy prices as well as possible long-term issues obtaining raw materials for the fittings it provides to the mining, automotive and agriculture sectors.
That's all pushing Nowak to hasten his search for opportunities that broaden BTQ's portfolio. He's overseen venture capital investments in Europe and the U.S. since the start of 2021, and is now looking to partner with other family offices to diversify further. The Lodz-based firm has also made a private equity investment in Europe.
“Our strategy is definitely shifting into being less concentrated,” he said.
Read more: How Russia's Gas Ban Rips Through the Core of European Industry
The families behind BTQ also own real estate assets and the Jurczyks still retain part of a wine business, Tim, they founded in 1990. They sold a majority stake in the company in 2005 to the Polish wine firm Ambra SA.
Mangata -- then called Zetkama -- began trading publicly the same year. The Jurczyk family became a major shareholder two years later along with the company's management after buying a stake from U.S. private equity firm Riverside. In addition to the rise in Mangata's shares, the firm has paid out more than $30 million in dividends over the past decade.
BTQ remains involved in Mangata's operations and plans to use its dividends from the company to explore the new opportunities. The goal is to ensure that the fortunes Nowak oversees endure over generations.
Read more: How New Wealth, Few Rules Fuel Family Office Boom: QuickTake
“I'm very aware of being a steward of this wealth,” he said.
©2022 Bloomberg L.P.
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