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RCI I
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RCI I, Royalton Partners' first regional fund (2000 vintage), invested in six portfolio companies

Starman Cable TV


www.starman.ee

Starman AS ("Starman") is the largest cable TV operator in Estonia. The company provides several bundled service packages offering "triple play" service: video programs, broadband internet connection and voice telephony. It is also involved in the provision of terrestrial digital video services. RCI I bought a majority shareholding in Starman from the Swedish telecommunication group Telia in September 2000.

RCI I and the local management team provided additional development capital to facilitate further growth of the customer base, expansion into retail broadband internet services, and retail telephony. Starman almost tripled the number of cable TV subscribers, became a leader in the provision of internet services via cable in the main urban areas, and rapidly expanded into retail fixed-line telephony.

In June 2005, RCI I offered almost half of its shareholding in Starman in an IPO. Starman was listed on the Tallinn Stock Exchange. In September 2007, the remaining shares were sold to a consortium of financial buyers. RCI I realized a 3.1x multiple on its originally invested capital.


Állami Nyomda Rt


www.allaminyomda.hu

Allami Nyomda Rt. ("Allami") is the leading Hungarian security printer. Allami has four lines of business: plastic card solutions, document security solutions, electronic document management and bulk transactional printing. RCI iI nvested in the Hungarian media group Lang Kiado & Holding in December 2000. In 2003, RCI I initiated the demerger of the original holding company into two new groups - Lang Kiado & Publishing and Holding and Lang Security Technology Holding. RCI I held 45% of both companies. Lang Security Technology Holding owned 76% of Állami. In December 2005, Allami was listed on the Budapest Stock Exchange. RCI I sold 67% of its interest in the initial public offering. RCI I sold its remaining shares in a block trade on the Budapest Stock exchange in December 2006. RCI  I  achieved an exit multiple of 3.8x on this investment.


Lang Kiado & Holding Rt.


Lang Kiado & Holding Rt. was the holding company for several companies that specialized in two areas: (i) educational services and publishing and (ii) print media.

RCI I invested in the Hungarian media group Lang Kiado & Holding in December 2000. In 2003, RCI I initiated the demerger of the original holding company into two new groups - Lang Publishing and Holding and Lang Security Technology Holding. RCI I held 45% of both companies.

We introduced a strategy to shift the focus of Lang Kiado & Holding from mature, stable businesses to high growth, high multiple sectors. Lang Holding initially consisted of a printing and magazine publishing business. The cash flows from the printing division were leveraged to redirect the business into the educational media space. Perfekt was acquired in 2002, and NTK, the national textbook publisher, was acquired in 2005 from the Hungarian government in a leveraged privatization transaction.

In March 2006, the shareholders of Lang Kiado & Holding entered into an agreement to sell the educational business to the Finnish media group Sanoma. The company was fully exited in November 2008. RCI I achieved an exit multiple of 1.8x on this investment.


Ella Bank


www.elsolakashitel.hu

Elsö Lakáshitel ("Ella Bank") offers was established to provide mortgage financing to retail customers in Hungary denominated in Hungarian Forints or foreign currencies.

RCI I owned 87% of the shares in Ella Bank's Luxembourg holding company between 2002 and 2007.

Working with management, we transformed what was a limited savings and loans cooperative into a bank focused on mortgage lending. Ella Bank received a full banking license and developed an innovative marketing strategy, targeting young, family-oriented, professional customers. Execution of this business plan started in 2003. It consistently performed ahead of targets, becoming the fastest growing bank in the Hungarian mortgage market.

In March 2007, RCI I sold its shareholding in the bank to the French financial group AXA. The exit multiple reached 3.9x of originally invested capital.


mPunkt Polska

www.mpunkt.pl

mPunkt Polska SA ("mPunkt") was the second largest distributor of mobile phones in Poland. mPunkt operated more than 200 points of sale, which were located throughout the country, mainly in shopping malls and pedestrian shopping districts. The company distributed the mobile services of Polkomtel, Vodafone's affiliate in Poland. mPunkt also distributed telephones and accessories from leading global manufacturers, offered insurance and performed authorized repairs.

RCI I invested in this fast-growing Polish mobile telephone distribution network in January 2002. RCI cI ontrolled over 97% percent of the shares and committed development capital to facilitate expansion. mPunkt Polska's strategy was to maintain its position as one of the leading Polish mobile telephone retailers.

On May 4, 2010, RCI I finalized the sale of 100% of mPunkt Polska S.A. to Cyfrowy Polsat ,the biggest Polish DTH platform offering pay TV services as well as mobile telephony and broadband internet access. Final proceeds were received on August 4, 2010. RCI  Iachieved an exit multiple of 2.1x on this investment.


Vratislavia Holdings (Poland)


Vratislavia Holdings ("VH") was the Luxembourg holding vehicle for a portfolio of companies holding and managing real estate in Western Poland, which is partially disposed.

RCI I is still managing Wratislavia Tower a 19,000 sq. m multifunctional building in the center of Wrocław, Poland.


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