Private debt funds managed by Mount TFI financed six projects in the first half of 2024, totalling PLN 41 million. By comparison, in the entire year of 2023, there were seven transactions, also amounting to PLN 41 million. “2024 will be the best year in history in terms of transactions concluded by our private debt funds. Polish entrepreneurs are increasingly using this type of financing, and private debt fund investors see them as an excellent product to diversify their portfolios,” says Mikołaj Motz, president of Mount TFI.
According to the World Bank, the saturation of the Polish market with alternative capital to bank financing – such as private debt – is minimal. About GDP, we are far from the European average: about ten times lower than Germany and twenty times lower than the United Kingdom. Mount TFI is one of the few entities in the Polish market specializing in private debt financing. The company has been offering such financing since 2018, specializing in financing projects for small and medium-sized enterprises, where individual transactions range from PLN 5-20 million. Over six years of operation, it has completed 56 transactions totalling PLN 330 million, supporting promising investment projects in the manufacturing, financial, real estate, development, and food industries.
“By mid-year, we are already catching up with the number of projects financed last year, and in terms of value, we have reached the level of the entire 2023. The Polish economy is improving. Entrepreneurs are increasingly eager to start investments that require financing, and they will continue to be supported by GDP and export growth and the expected interest rate cuts. We are flexible in terms of financing structure, collateral, and terms, and we make decisions faster than banks, which is why we are seeing more and more interesting projects coming to our desks. This, in turn, translates into returns for investors, which in our private debt funds have historically been much higher than those of corporate or government bond funds,” says Mikołaj Motz.
The value of assets managed by Mount TFI has exceeded PLN 1 billion. They are primarily gathered in private debt funds, a Polish equity fund, and the Mount Global Real Estate Market Fund (MGRN). The latter was listed on the Warsaw Stock Exchange in April. It is the first and only entity listed in Poland that offers the opportunity to invest in global REITs, recognized as stable, long-term savings instruments.
“The introduction of its certificates to the stock market facilitates the purchase process for individual investors. A significantly lower issue price, compared to the requirements of a non-public fund, improves the accessibility of certificates for individual investors. The public offering of MGRN came at an excellent time for REITs and the real estate market, which is already bringing benefits to investors,” says Mikołaj Motz.
Mount Towarzystwo Funduszy Inwestycyjnych S.A. is an independent investment fund company. It manages funds that support the sustainable development of the Polish economy and offers services for managing the liquid part of the wealth of affluent Poles. It manages assets worth over PLN 1 billion. As a leader in non-bank private debt financing, it supports promising projects of Polish companies in key economic sectors: financial, manufacturing, industrial, and real estate.