Franklin Templeton has offered a four-year investment management mandate, believing it is best positioned to continue to create value for all of the Fund’s shareholders by implementing a strategy with proven results to increase portfolio company value, actively engage in portfolio company relationships and distribute cash to shareholders.

Johan Meyer, CEO of Franklin Templeton Bucharest and portfolio manager of Fondului Proprietatea, said that these efforts are supported by the professional and experienced team of Franklin Templeton in Bucharest, which in turn is supported by the Franklin Templeton organization, one of the largest investment managers worldwide. This collaboration over the last 13 years has brought exceptional results to its shareholders, as recently demonstrated by the successful listing of Hidroelectrica, which was the largest listing in Romania to date and one of the largest in Eastern Europe.

“We have an investment plan and we want to continue to develop the Romanian capital market and increase the portfolio through new investments. For this, we need the support of shareholders to implement the new strategy,” says the representative of FP.

FT has made a serious long-term commitment to Romania. “The fund has never been viewed as a short-term vehicle or focused on a specific transaction, and with the support of our shareholders, we will be here forever,” Meyer said.

Regarding the extension of the mandate for 4 years, Johan Meyer explained that this is an investment strategy. “Now, if we look at the life cycle of a typical private equity investment, it’s comfortably over four years from identifying the investment, executing the deal, working with the company to add value, and exiting. Therefore, we felt it was inappropriate to offer a short-term mandate while trying to offer a long-term strategy for the Fund,” Meyer said.

What are the investment plans

“One of the areas that we have identified as having significant potential for the Fund and ultimately for the capital market in Romania is the potential to invest in pre-IPO opportunities where we can leverage our existing expertise, experience in partnering with companies and in preparation of companies for listing on the stock exchange,” concluded Johan Mayer.

The fund administrator recommends that shareholders support Franklin Templeton’s four-year mandate as administrator of Fondul Proprietatea. This decision will ensure stability and create the conditions for the continuation of the proven history of value creation for all its shareholders and, with their support, the implementation of an investment strategy that will strengthen the development of the capital market in Romania.

The article is supported by Fondul Proprietatea