Its a Bingo investing in Eastern Europe & the Balkans.

As the case is with all emerging markets there are many challenges to investing in Eastern Europe. The region has been plagued with instability; the absence of adequate legislations and the existence of grey markets. However, growing economies and frontier emerging markets must face and fight through such adversities and stigmas on the path to prosperity. No changes can happen over night, on the contrary, it may take generations to achieve prosperity and economic stability. In the midst of all this, investors should look at the inherit opportunity that exist under these shadows.

Foreign investors in my opinion have focused more on the weaknesses and dangers of doing business in these markets, rather than the underestimated advantages and massive opportunity for value harvesting. Timing is a key element when making sound investments and is an important advantage in achieving returns. Today is the right time to invest in Eastern Europe, as the environment is ripe for value conception and extraction. When stability ensues in this region, and have no doubt that it will, and the economies start performing exceptionally well, it would be too late then.

In June 2015, the FT stated, and I quote “the region appears to have the attributes necessary for other companies ... Growing economies, rising private spending and a steady flow of tens of billions of EU funding have resulted in strong market dynamics to support new ideas and concepts.” This prelude coupled with a strong growing demographic base with a strong desire to catch up to the western world truly paves the way to a prosperous future for this region.

Private equity and investment flows are starting to come into the region and deal scouting has become the norm. The challenge remains in finding the right quality opportunity that will generate value and make money. We have been successful in both sourcing the right opportunities and in extracting hidden value. Its not easy nor is it simple, however, our track record has proven our prospects and value recognition are in the right place.

We are and will continue to be big proponents of investing in this region and more specifically in Montenegro, Serbia and Bulgaria. The current appetite from our investors has also been exceptional and we are continuously oversubscribed for participation on such opportunities.

The views and opinions expressed in this article are those of the authors and do not necessarily reflect the opinion or position of ADFG or any of its group companies.