Igor Čičak, Founder and Managing Partner of Provectus Capital Partners, and Marko Galić, Partner, participated in this year's Izazov promjene conference, organized by the Zagreb Stock Exchange and the Croatian Pension Funds Association (UMFO). Their contributions focused on the development of private equity in Croatia and Southeast Europe, active value creation and the role of private capital in supporting business growth.
During a fireside chat moderated by Anja Šeparović Konosić, Igor Čičak shared his perspectives on developments in European and regional private equity markets, the evolving exit and fundraising environment, and the increased focus on active value creation.
He highlighted the significant potential for further private equity development in Central and Eastern Europe, where investment levels relative to GDP remain well below the European average. At the same time, the region's fragmented markets, combined with a substantial base of established SMEs, provide opportunities to build larger, internationally competitive businesses.
A central theme of the discussion was the role of active value creation in generating investment returns. Čičak emphasized that while active ownership has always been fundamental to successful private equity investing, a more selective investment environment has placed greater emphasis on operational performance and business development. Successful buy-and-build strategies require more than acquisitions, with long-term value generated through business integration, operational improvements, stronger governance and close cooperation with founders and management teams.
The discussion also touched on the continued development of the regional private equity market, with more experienced fund managers, larger successor funds and a growing capacity to execute investment strategies across multiple markets.
Later in the programme, Marko Galić participated in the panel "Private Capital, Real Impact: Building Croatia's Success Stories", which explored investment opportunities in Croatia and the role of private capital in supporting the growth of successful businesses.
Drawing on Provectus' investment experience, Galić discussed the development of Adria Dental Group and Arsano Medical Group into regional healthcare platforms, highlighting how buy-and-build strategies, active ownership and close cooperation with management can help established local businesses achieve greater scale and expand across markets.
He also reflected on the recently announced transactions involving the partial realization of investments in both groups, with a private equity investor entering Adria Dental Group and a strategic investor entering Arsano Medical Group. While both transactions remain subject to regulatory approval, they illustrate how the development of regional platforms can attract different types of investors, offer liquidity to existing shareholders and support further growth, while allowing Provectus to remain invested in both businesses.