Jiří Zelinka opens global private equity to Czech millionaires

Raiffeisenbank's private banking arm is opening up world-class deals to its wealthiest Czech clients. Through its new qualified-investor fund, the Global Private Equity Fund, local millionaires will be able to invest alongside global players such as CVC and Carlyle. The division is headed by Jiří Zelinka, head of private banking at Raiffeisenbank.

“We're targeting an internal rate of return of 10 to 15 percent, and in the first period alone we've already raised more than half a billion crowns,” says Zelinka.

British firm CVC Capital Partners manages assets worth more than €212 billion and previously helped the Czech company Avast reach a billion-dollar valuation. American giant Carlyle, with a $485 billion portfolio, recently acquired a controlling stake in the technology group Adastra. It is through these and other major private equity funds that the new fund plans to grow the capital of Czech investors.

“Besides Carlyle and CVC, we see strong opportunities in the Swedish group EQT and the regional player MidEuropa,” Zelinka adds.

The fund is structured as a so-called evergreen vehicle — unlike classic private equity funds, it has no fixed term. The minimum entry threshold is one million crowns, and while the bank recommends an investment horizon of at least ten years, invested funds are locked up for the first three years. The management fee is one percent, with everything else going to clients.

“By launching the fund, we're responding to clear demand from our clients, who previously had to look for such opportunities through foreign banks. As new opportunities arise, we'll open up new offerings to investors as well,” adds the head of private banking.

Funds built for specific clients

Jiří Zelinka has managed the fortunes of Czechia's wealthiest clients at Raiffeisenbank since 2019, when he moved over from UBS in Zurich. He applies his international experience in particular to building strategic mutual funds that combine equities and bonds. One example is the Strategy 60 fund, which has generated an average annual return of 7.7 percent over seven years of operation. “That's a very good result, despite the market swings caused by the pandemic and the war in Ukraine,” the banker notes.

Under his leadership, the bank's division has begun creating individual FKI funds for specific family fortunes — around ten have been set up so far. “For example, last year we created a fund for one client in partnership with the American software group Thoma Bravo. That will be another interesting partner for our Global Private Equity Fund too, once new investment opportunities open up,” Zelinka mentions.

It is precisely this individual approach that earned Raiffeisenbank's private banking the prestigious Euromoney ranking as the best in Czechia. “Last year the division managed to grow its assets under management by 25 percent, and double-digit growth is expected again this year,” Zelinka says.

Looking after future generations

According to Zelinka, individual fund structures are also an ideal way to pass wealth between generations, since they can offer a more favorable tax regime compared with classic funds and trusts.

However, the handover process itself often runs into differing approaches between generations. Founders from the 1990s tend to stay too conservative, keeping a large share of their capital in deposits, while the new generation is more inclined to take risks under the influence of investment bloggers and dreams of quick profits through AI tools.

“In the short term, that kind of gamble can pay off, but it exposes family wealth to unnecessary risk. Anyone who wants to enjoy their money without stress should remember the golden rule of wealth management — diversification matters, along with bonds managed by specialists who understand the dynamics of interest rates and maturities,” Jiří Zelinka concludes.

By the Around Prague newsroom