How we manage our portfolio companies

Portfolio Companies

Early Stage


Our Beverage Business is a leading beverage producer and distributor in Georgia, combining three different business lines: a wine business, a beer business and a distribution business. Wine business produces and sells wine and vodka products to local market and exports to 14 countries. The beer business produces mainstream beer and lemonade on the local market, while also owning 10 year exclusive license to produce Heineken, Krusovice and Amstel in Georgia and sell in Georgia, Armenia and Azerbaijan. The distribution business primarily distributes wine and beer products of Beverage Business as well as third-party products within Georgia.

  • High growth sector, which has doubled during the last 5 years to GEL 1.9 billion market
  • Beer consumption at one of the lowest levels in the wider region at 27.5 liters per capita
  • 50% CAGR growth in soft drinks export over the last 3 years
  • Georgia’s favorable trade regimes (FTAs with EU and China) provide potential for export growth for beverages
  • Best-in-class distribution network platform  
  • 10-year exclusivity from Heineken to produce and sell beer in Georgia, Armenia and Azerbaijan
  • Grow vineyard base to 1,000 hectares, from current 451 hectares, over the next three years  
Hospitality & Commercial real estate

Targeting to spin-off yielding properties as a listed REIT managed by m2

Our hospitality & commercial real estate business is comprised of:

  • (a) rent-earning commercial assets, with target yield of 10%; and
  • (b) hotel developments across Georgia with a target of 1,000 rooms over the next three years, Currently approximately 1,000 rooms of which 152 are operational and c. 940 are in the pipeline

m2 to pursue an asset light strategy which involves growing a yielding asset portfolio through real estate developments/opportunistic acquisitions (which includes commercial rental space and hotels), and taking advantage of a shortage of hotels in a growing tourism market in Georgia.

Renewable Energy

Our renewable energy business is a platform for developing hydro power plants, wind power plants and solar power plants across Georgia.

  • Underdeveloped energy market with potential for significant growth - Low per capita power usage  
  • Cheap to develop – up to US$ 1.5 million for 1MW hydro and up to US$ 1.4 million for wind development 
  • Opportunity to establish a renewable energy platform 
  • Energy consumption has grown at 5.7% CAGR in last 10 years. Energy consumption is expected to grow further at least by CAGR 5%, translating into doubling of the consumption over the next 10-15 years, while supply growth has been slower and electricity deficit is anticipated to continuously increase
  • Stable dividend payment capacity in the medium term 

Late Stage

P&C Insurance

Our property and casualty Insurance (P&C Insurance) business is a leading player in the local P&C insurance market with a 32% market share based on gross premiums. P&C Insurance offers a wide range of insurance products to Georgian corporates and retail through five business lines: motor, property, credit life, liability and other insurance services. 

  • Significantly underpenetrated insurance market in Georgia 
  • Market leader with a powerful distribution network of point of sale and  sales agents 
  • Compulsory border TPL effective from 1 March 2018 
  • Very low penetration of 0.6% - awaiting compulsory local third party liability launching
  • First mover advantage in underpenetrated SME segment
  • Growing dividend payout capacity 
Housing Development

Our housing development business is a leading real estate developer on the US$ 1.1 billion Georgian real estate market with three business lines: (a) a residential development arm targeting mainly mass market customers by offering affordable, high quality and comfortable housing; (b) a construction arm, engaging in construction contracts for other businesses as well as third-parties; and (c) franchise platform for development of third-party land plots with fee sharing arrangements.   

  • Shortage of housing from Soviet era combined with Georgian tradition of multiple generations living under one roof, average household size is significantly higher at 3.5 compared to Eastern or Western Europe 
  • Most of the housing stock dates back to Soviet era and is amortised 
  • In line with the economic growth, urbanization level is expected to increase from the current low level 
  • Outstanding track record - IRRs ranging from 31% to 329% on seven completed residential projects
  • Unlock land value by developing housing projects 
  • Development of third-party land – franchise m2 brand name. Undisputed market leading platform of at least 2,500 apartments to be delivered over the next five years 
  • Earn construction management fees from third-party projects and bring construction works in-house
Water Utility

A privately owned natural monopoly in Tbilisi and the surrounding area, where it provides water and wastewater services to 1.4 million residents representing more than one-third of Georgia’s population and c. 33,000 legal entities. Water Utility also operates hydro power plants with total installed capacity of 152 MW.

  • Natural monopoly in Tbilisi and surrounding district 
  • Utilities sector represents 3% of total Georgian economic output with c. 8.2% CAGR (2006-2017)
  • Stable regulatory environment with fair return on investment 
  • Stable cash collection rates
  • EU harmonization reforms in progress in utilities sector in accordance with Georgia’s undertaking under the Association Agreement with the EU, expected to drive water tariffs up 
  • High GDP growth combined with rapid tourism growth drive high demand from corporates 
  • Energy market deregulation expected to positively affect electricity sales price 
  • Upside opportunity from pursuing cost efficiencies by targeting decrease in self-consumption of electricity in order to free up energy for third party electricity sales 
  • Growing dividend payment capacity 



<span>Georgia Healthcare Group</span>
  • Very low base: healthcare services spending per capita only US$ 325
  • Growing market: healthcare spending growth estimated at 8% CAGR 2018-2021 
  • High-growth potential driven by opportunity to develop medical tourism and Polyclinics (outpatient clinics) 
  • Only integrated player in the region with significant cost advantage in scale and synergies 
  • Well positioned to take advantage of the expected long term macroeconomic and structural growth drivers

(non-voting shares)

<span>Bank of Georgia</span>
  • High standards of transparency and governance - The first entity from Georgia to be listed on the premium segment of the Main Market of the London Stock Exchange (LSE:BGEO) since February 2012.
  • Leading market position1 in Georgia by assets (35.1%), loans (33.8%), client deposits (34.6%) as of 31 March 2019
  • Strong brand name recognition and retail banking franchise, c. 37.5%1 market share in retail loans
  • Sustainable growth combined with strong capital, liquidity and robust profitability
  • Outstanding ROAE performance

(1) Market data based on standalone accounts as published by the National Bank of Georgia (NBG)