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Invest with us in Jet 2 Private Equity Fund

blue-fond-jet-2

Enjoy the luxury of high returns with reasonable risk

All across Europe, there are numerous undiscovered investment opportunities with great potential. These are industrial enterprises. Some of them are on the verge of expansion, while others await a return to the premier league. They have one thing in common: a need for funding and know-how. We have both. Bringing in someone who has been searching out and managing companies for 20 years, as we have, minimizes the risk of such investment. Jet Funds for qualified investors can provide you an opportunity to participate with us in large-scale private equity investments and to profit from their high returns. 

Two years ago, more than 100 investors from across the Czech Republic and abroad decided to invest into the Jet 1 Fund. To date, that fund has achieved a valuation gain of 16% p.a.  We would like to offer the same opportunity also to you.

111
INVESTORS
3.3 mld.
OF INVESTMENT CAPITAL (CZK)
40 %
SHARE OF JET PARTNERS
4
BUDOUCÍ PLATFORMY
8-10
LET INVESTIČNÍ HORIZONT
15 %
A VÍCE CÍLOVÁ VNITŘNÍ MÍRA NÁVRATNOSTI

85f037e1-1fb8-4fd0-b6cb-d967493b3e68 I want to call you

We will present the investment to you personally

Thank you for your interest in Jet 2 Fund. We fully understand that you will not want to decide online about such an important investment. We would like to speak with you about your objectives and perhaps agree a suitable date for a personal meeting.

Investment of CZK 1–10 million

David Kufa a Tomáš Kálal from CONSEQ will be pleased to assist you.

+420 602 769 223, +420 728 083 535

Investment of CZK 10 million and more

Jan Brávek from Jet Investment will be pleased to assist you.

Please call +420 724 357 700

Long-term results speak for us

The successes of the past 20 years are evidenced in our track record. We started out with a million crowns, and today we make billions with our investors. As a matter of principle, we invest only in projects we believe in.

We actively manage every business in the portfolio

We do not achieve high returns just by sitting behind a desk. Our project managers personally manage every business in our portfolio, and their remuneration is entirely dependent on how well the company fares over the long term.

We invest in accordance with respected standards

We apply standardized principles in fundraising, investing, and managing our investment company. Jet Investment is licenced for establishing and managing private equity funds anywhere in the EU. Moreover, our investments are under the strict supervision of the Czech National Bank.

How to become a Jet 2 investor

Step by step

  • Before you invest

    Each and every investor is an individual. We will discuss your needs and questions in person at a face-to-face meeting. If you will have an unanswered question, we will be pleased to answer it over a cup of coffee. If you have any concerns, we will work with you to address them. Give us a call, and we will agree a date that works for you.

  • Signing the investment contract

    Have you decided to invest with us? We value your trust! Our first step together will be to sign an investment contract. This is an agreement whereby you undertake to invest in Jet 2 by subscribing to shares. The contract clearly defines the maximum amount you intend to invest and that must not be exceeded. Along with your contract, you also will receive the Fund’s Articles of Association, which spell out the rights and obligations of its members, as well as the Fund’s Bylaws, which clearly define Jet 2 Fund’s investment strategy. 

  • Fund’s investment period

    The first three years of the investment horizon, which is established in Jet 2’s case as eight to ten years, will be the busiest period for you. From 2018 to 2021, Jet Investment will gradually call up the funding from its investors and use them to make acquisitions in target businesses. When this so-called “capital call” is made, you will have 30 days to send the required amount to the Fund. Upon paying in per the capital call, you will receive shares in the Fund in dematerialized form.

  • The far side of the investment horizon

    Jet Investment’s managers have the same objective as you do throughout the Fund’s entire existence: return the acquisition value of the shares back to you as quickly as possible. They have a purely pragmatic reason for that. Until what you have invested is back on your account, the investment company and its founders are not entitled to the performance fee. Although we cannot predict when exactly this will happen (probably in the second half of the horizon), we can assure you that we are maximally motivated to make it happen as soon as possible.

  • Your exit from the Fund

    At the end of the investment horizon, only liquid assets will remain in the Fund – that means funds from the sale of the portfolio companies. At that time, Jet 2 will be transformed from a closed to an open-ended fund, thus enabling you to exit by its buying back your shares. We believe that eight to ten years from the time of your investment this will be a pleasant obligation.

Jet Investment in a nutshell

Příběh Jet Investment
Proč vydělávat s fondem Jet 2?
Proč investovat do private equity?
Jsme správným investorem pro váš podnik?
Jak vybíráme ty správné firmy?

FAQ

Frequently asked questions from investors

  • What are qualified investor funds?

    Investments into qualified investor funds, such as Jet funds, are not open to the general public. Jet funds allow investors – most frequently financial institutions and individuals – to take part in much larger investment opportunities than they would be able to achieve by themselves. That means you can invest with us only if you are aware of the risks that accompany investing into the Fund and if the investment is appropriate for your financial situation. You must confirm this fact in a declaration even before you invest. Your status as a qualified investor is then confirmed by the Fund’s administrator.

  • Is there some limit on the invested amount?

    The minimum investment into Jet 2 Fund is CZK 1 million, and there is no upper limit. However, the invested amount determines which entity you will deal with in making your investment. Investments of CZK 10 million and more are our responsibility, and you will therefore sign the investment contract with a representative of Jet Investment. If you decide to invest less then CZK 10 million, our partner CONSEQ will work with you. This arrangement will allow us to dedicate more time and personal care to each investor. Whichever amount you decide to invest, your rights and obligations as an investor remain the same.

  • What return on investment can I expect from Jet 2 Fund?

    For Jet 2, we have established a target internal rate of return, after deducting all expenses and fees, at 15% per year or more. Our Jet 1 Fund is achieving our assumed rate of return, having reaching 16% p.a. in two years.

  • When can I invest into Jet 2 Fund?

    Jet 2 Fund’s subscription period is from March to October 2018. If you are seriously considering an investment, it is best to contact us as soon as possible. In case the Fund will be fully subscribed prior to the final date, it no longer will be possible to invest in the Fund. We would only be able to offer you another possibility to participate in our investments and returns several years from now through the intended funds Jet 3 and Jet 4.

  • What will be the target capital value of Jet 2 Fund after subscribing all investments in October 2018?

    The Fund’s target capital value is in the range of CZK 2.5 billion to CZK 5 billion.

  • How long is Jet 2 Fund’s investment horizon?

    Ideally eight, but no more than 10 years.

  • What does it mean that Jet 2 Fund is a closed fund?

    The shares you own in the Fund always will correspond to the value of the assets owned (i.e. primarily illiquid ownership stakes in businesses). Therefore, it is not possible for the Fund to redeem its own shares at the investors’ request during its investment horizon.

  • Can I leave Jet funds during the investment horizon?

    We are of course prepared for that possibility. Even though Jet 2 Fund is a closed fund, we would honour your wish to leave the Fund’s structure. For this purpose, we have prepared so-called “auctions” for you, which will be held at least once a year and by which we can assist you in divesting of your shares. A necessary condition for selling your shares is of course that there will be interest from one or more from potential buyers. Unfortunately, we cannot guarantee divestments.

  • What is an auction and how does it work?

    If you will need to exit Jet 2 Fund before the end of its investment horizon, then during the annual auction Jet Investment will anonymously connect you with investors who are interested in buying your shares. You can transfer your shares either to current investors within the Fund or to new investors who satisfy the legal requirements of qualified investors. If you and your counterparty reach a deal through us, only then will we reveal your identity and that of your counterparty. We will handle all administration related to sale of the shares and transfer your obligations to the new investor for you.

  • What is a capital call and when will it affect me?

    In signing an investment contract, you undertake to invest an amount of your own choosing. You thereby give permission for Jet 2 Fund to ask for those funds during the investment period through a so-called “capital call”. During the first three years of the investment horizon, there will be several capital calls, typically before businesses are acquired. For example, Jet 1 Fund used six capital calls within its investment period. When a capital call is made, you will have 30 days to send the requested amount to the Fund. Once you have done so, you will receive a proportionate amount of shares in the Fund in dematerialized form. In addition, after each capital call you also will receive an account statement from which you can determine the precise number of shares you hold in the Fund.

  • Do you know in advance into which companies you will invest and how many there will be?

    We are planning to invest into eight to 15 small to medium-sized production companies in Europe from which we will build up four to five industry platforms. Considering the development phase the businesses are in, we will continue to follow our current strategy by carrying out buy-out, growth, rescue / turnaround, and late-stage venture acquisitions. We will maintain portfolio diversification while investing into industrial fields. These will include in particular the machinery, specialty chemicals, technical textiles, building materials, renewable energy, automotive, aeronautic, and railroad industries, but we also will not shy away from opportunistic investments.

  • Who are Fund’s investors?

    As the Czech Republic’s largest private equity fund, we make it possible for individuals to invest. More than 100 entrepreneurs and managers invested into Jet 1 Fund with us, with the minimum investment in that case being CZK 5 million. In addition to individuals, Jet 2 Fund will be open also to financial institutions.

  • What is Jet Investment’s success fee?

    The basic fee for managing Jet 2 Fund is set at 1.8% per year. We are achieving above-average returns, however, primarily because our project managers are working every day out in the field in managing our businesses. We at Jet Investment are eligible to receive performance fees only after we fully return the acquisition value of the shares to you, typically in the second half of the investment horizon. The performance fee is 1% for the manager and 20% for the founders from the returns paid above and beyond the level of the entry investment.

  • What is the ownership structure of Jet 2 Fund?

    Jet 2 Fund’s general partners are the partners of Jet Investment, who will hold 10–20% of the shares in the Fund. The remaining 80–90% will be held by the limited partners, primarily consisting of high net worth individuals as well as domestic and international financial institutions.

Private equity glossary

angel investments

Investments into small companies at the phase of their formation. It constitutes a bridge between the initial investment by the company’s founder(s) and an entry of venture capital. Typical angel investors are individuals close to the company’s owners.

capital call

A call from an investment company for the investor to deposit the promised investment into the fund. The sum of all capital calls may not exceed the total amount of the investor’s capital commitment.

private equity

Collected capital of institutional investors (e.g. pension funds, insurance companies, banks, investment funds, funds of funds, and family offices), as well as high and very high net worth individuals used for direct financing of companies not publicly traded on any stock exchange.

General Partner (GP)

The general partner is the manager/owner of a fund with potentially unlimited rights to act concerning that fund. He or she is responsible for managing and administering investments and, for doing so, he or she is entitled to a management fee and a percentage of the fund’s return, the amount of which is established by the fund’s bylaws.

Limited Partner (LP)

A limited investor in a private equity fund (also termed a silent partner) has only limited rights in matters concerning the fund’s management and does not participate in its operations. He or she is entitled to receive returns from the fund’s investments.

private equity fund

A fund pooling the investments of institutional investors, individual investors, and fund managers. The purpose of a private equity fund is to invest capital into companies that are not publicly traded and to generate profit by developing them and subsequently selling them off.

private equity & venture capital

Venture capital consists of funds invested into companies in the early stages of their development. Private equity capital comprises investments into companies in the late stages of their development as well as in mature companies.

track record

Results demonstrating a fund’s long-term profits and rate of return

capital commitment

Total amount an investor has undertaken to invest into a fund. This amount is invested not all at once but gradually based on capital calls from the fund’s manager at such times as the fund intends to buy new companies.

EBITDA

Earnings before interest, tax, depreciation, and amortization. It is an indicator of a company’s operating performance.

venture investments

Investments during the initial phase of their development into smaller companies with high growth potential (start-ups) and needing financial capital for introducing a product to the market, developing an existing product or its marketing. Typical investors are venture funds.

late stage venture

Investments into relatively developed companies with their own products but which do not have established corporate management structures for their further development as well as sufficient financial or strategic capital. Investments usually comprise managerial and financial support for new products, technologies, or general company expansion. Typical investors are private equity funds.

growth

Investments into mature companies with established positions in their markets needing financial resources for their own development, expansion into new markets, or financing of acquisitions. Typical investors are private equity funds.

buy-out

Buy-out of a majority ownership share in a company

acquisition

The process of acquiring a property or group of assets identified in advance. In the case of a private equity fund, this usually entails taking over a company.

Growth & dividend part of the portfolio

A combination of two basic parts of a portfolio characterized by returns of different types in order to diversify investment risk. The dividend part of the portfolio consists of prosperous businesses offering attractive and stable dividends. The growth part of the portfolio comprises companies with substantial potential for restructuring and subsequent growth.

liquidity

The ability to convert assets into cash (alternatively, the speed at which this can be achieved)

turn-around / rescue

Investment into companies that are performing poorly in the short term with the objective of consolidating and restructuring their operations. Liquidation processes are also permissible in certain cases.

diversification

Distribution of the portfolio across various investment instruments, industry or geographic sectors, and company types with the objective of reducing investment risk

cashflow

The difference between incoming cash and cash flowing out for a certain period

due diligence

A comprehensive examination of a company that precedes an investor’s entering the target company. Among other aspects, it includes a deep and detailed financial, managerial, and technical audit.

exit strategie

A pre-defined procedure followed upon reaching an investor’s strategic objective or a process for when the determined strategy fails. Typical exit strategies may include selling the company to a strategic partner, merger with another company, stock exchange flotation or closing down the company.

IRR (internal rate of return)

Internal rate of return is a highly objective indicator of an investment’s performance that measures the investment’s returns and value over time relative to the invested amount.

Paid-in Capital (PIC)

The share of capital called up relative to the total fund capital subscribed

Distributed Value to Paid-in multiple (DVPI)

A ratio of the cumulative amount of a fund’s distribution to the amount of capital called up

Residual Value to Paid-in multiple (RVPI)

The ratio of fund capital to capital called up

Total Value to Paid-in multiple (TVPI)

The ratio of the sum of fund capital value and cumulative amount of fund distribution to the amount of capital called up. It is used as an indicator of a fund’s performance before the end of its lifetime.

p. a. (per annum)

on a yearly basis