News
GILD Bankers’ operating profit EUR 5.1 million in 2008
GILD Bankers Group (AS GILD Partners) generated operating profit of EUR 5.1 mln in 2008, remaining on the same level as in 2007, which is thus far the most successful year in the history of GILD Bankers. Majority of the Group's operating profit was derived from fees - in 2008 the net fee income was EUR 10 million, increased 17% compared to 2007. At the end date of 2008, the Group had consolidated assets in the amount of EUR 7.7 million, whereas more than half of them were made up of assets with high liquidity. At the end of the year Group's total liabilities reached EUR 1.1 million and equity EUR 6.6 million.
GILD Bankers Managing Partner Rain Tamm is satisfied with the results, which despite the economic downturn emerged in 2008 are on the same level as during market upturn in 2007: "According to the nature of GILD Bankers business our performance stems from continuous efforts over a long period of time, such as in 2008 the successful exits from some of the private equity investments managed by GILD contributed to the successful annual results of the entire GILD Group. One of our business principles is not to use debt capital nor invest our own equity."
Investment banking and private banking business lines also had some noteworthy achievements. In 2008 GILD Investment Banking completed 12 transactions in the combined value around EUR 200 million. With the most appropriate investment tactics GILD Private Banking managed to preserve the value of assets in clients' investment portfolios despite the negative market conditions.
Mr. Tamm added: „Deteriorated business environment had the most evident effect on one of the products of our Alternative Funds unit, namely risk capital fund GILD Arbitrage that is directed to professional investors and focuses on investments with a higher risk level. Currently the portfolio of the fund includes some investments with good intrinsic value and the team is actively dealing with realizing the best value of these assets. However, GILD Arbitrage is only one part among different activities of our three business lines, thus the proceedings of the fund do not reflect or have a direct influence on undertakings of other business lines."
Mr. Tamm also emphasized that today the focus of GILD Bankers is on overcoming existing challenges and generating new business opportunities: "Our primary priority in all economic cycles is to protect the interests of our clients and investors. We also have the interests of investors in mind when finding the most reasonable solution to the current liquidity situation in GILD Arbitrage."
According to Mr. Tamm GILD Investment Banking is currently active in identifying the companies, who could be interested in investing in the Baltic region: "Cooperation within M&A International alliance has intensified. As the only Baltic member of the alliance we have access to companies with acquisition interest and capacity across the globe. In addition to traditional partners in the Scandinavian countries, we have detected interest also from companies in Italy, France and Germany."
GILD Bankers is a leading Baltic investment bank active in Emerging Europe. The core services of GILD are management of alternative funds, investment banking and private banking. Baltic countries are the home markets of GILD, but the area of activities and investments extends to the CEE, CIS and Nordic region.
For further information, please contact:
Kadri Kütt
GILD Bankers Communication Manager
+372 56 800 467
kadri.kytt@gildbankers.com