Georgian Co-Investment Fund

Overview

Established in 2013, the Georgian Co-Investment Fund (GCF) is a private equity fund with assets under management exceeding $6 billion. The fund aims to provide investors with unique access to opportunities in Georgia's rapidly growing industries through a private equity structure. GCF's investor base includes prominent members of both international and domestic investment communities, such as sovereign wealth funds, major global corporations, and private family offices. The fund's primary focus is on sectors that significantly contribute to the development of the Georgian economy, including energy and infrastructure, hospitality and real estate, agriculture and logistics, and manufacturing. GCF employs a strategic approach to its investments, considering opportunities across various stages of company development, from growth to late-stage and buyouts. The fund's investment instruments include equity and hybrid financial instruments, such as convertible debt. It typically invests in projects with a minimum size of $5 million, aiming for a minimum equity internal rate of return (IRR) of 17%. The fund's equity participation ranges from 25% to 100%, and it may finance up to 75% of a project's capital. The typical investment horizon is seven to nine years, with exit strategies including initial public offerings (IPOs), trade sales, or achieving desired IRR through operations or unit sales. Over the years, GCF has been involved in several significant projects across its target sectors. In 2016, the fund announced plans to launch eight large-scale investment projects in Georgia, totaling $574 million. These projects included various hotel developments and recreational complexes aimed at boosting the country's tourism sector. Additionally, GCF has invested in energy projects, such as hydro power plants, and in manufacturing and agriculture, including a construction materials company and a hazelnut plantation. The fund's diversified portfolio reflects its commitment to fostering economic growth and development across multiple industries in Georgia.