BUSINESS ACTIVITY
THFAO: A Trailblazing Investment Odyssey
Founder of The Horvat Family Office (THFAO), Darko Horvat, embarked on his illustrious business journey in 1989 while pursuing his studies in Electrical Engineering in Ljubljana, marking the genesis of his entrepreneurial saga.
1994
1993-1994
1994-Present
2002-Present
2000-2011
1989
2006
Early Beginnings
Darko Horvat began his entrepreneurial journey with his first company, while studying electrical engineering at university in Ljubljana.
Diversification
During the early 90s, Darko laid the cornerstone for diversification and established a robust holding company structure, while expanding his business activities and investments to the CEE.
Investing and Developing Human Capital
Notably, the organisation pioneered investments in Human Capital, revolutionising success paradigms by sponsoring employee MBAs and facilitating continuous executive education. This visionary move cultivated a pool of talented professionals, elevating both individuals' careers and contributing significantly to Slovenia's economic landscape.
Institute for International Business Studies (IIBS)
In 1994, Darko founded the Institute for International Business Studies (IIBS), a groundbreaking joint venture with a consortium of 13 American universities. This initiative introduced full-time and part-time MBA programmes in Italy and Slovenia, empowering over 100 Slovenian graduates, many of whom were sponsored by THFAO’s business endeavors.
M&A and Investment Advisory Services
Simultaneously, the office set up a JV with EPIC (European Privatisation and Investment Corporation) to provide cross border M&A and investment advisory services, facilitating international corporations' entries into Slovenia and CEE, a pioneering step in the regional investment landscape.
Global Expansion and Multifaceted Investments
Marking a global footprint, THFAO expanded investments internationally, diversifying into the tech sector in Israel, Europe, the USA, and Asia.
These strategic moves included acquisitions of Israel’s largest conglomerate and a move into the consolidation of the Serbian Pharma industry, showcasing a versatile investment portfolio with a strong focus on technology, finance, and natural resources.
Opening London Office
Since establishing the office in London in 2002, THFAO’s investment strategy has focused on special situations, investing in various industry sectors, high-tech advancements and, in the last five years, AI and Industry 4.0 across Europe, the USA, and the Middle East. With over 100 investments and co-investments across its portfolio, the office emphasises innovation, entrepreneurship and cooperation with brilliant teams and individuals.
Beyond the Commercial
Philanthropy and Recognition
Beyond entrepreneurial triumphs, THFAO’s commitment extends to philanthropic initiatives. Establishing foundations supporting underprivileged youth in Slovenia and promoting peace initiatives in Israel. Meanwhile, the Petra Foundation was founded to promote eace between the Arabic and Jewish populations of Israel.
Awards and Leadership
Acknowledging Darko's visionary leadership, he was honoured as a Young Global Leader by WEF Davos and received an Honorary Doctorate from Haifa University. THFAO’s businesses earned a place in the BSC Hall of Fame by Kaplan and Norton Harvard University.
Continued Investment Strategy
Commitment to Investors
In the year 2000, Aktiva DZU accomplished a significant milestone by acquiring Atena Fund Management, solidifying its position as the largest privatisation fund management company in Slovenia with a remarkable 15% market share. This acquisition marked a pivotal moment in the Slovenian privatisation process, as Aktiva DZU emerged as the most successful investor by initiating public takeover bids of listed closed-end investment funds under its management.
New board members and management were appointed by international trustees. Over EUR 150 million was disbursed to all minority shareholders, benefiting more than 120,000 Slovenian citizens, ensuring fair market value for their investments. Aktiva DZU upheld its commitment to investors by enabling them to sell their shares, fulfilling a public promise and cementing its reputation as a trustworthy and reliable entity in the financial landscape. Trustees had divested all the last remaining assets by 2011.
Banking and Investment
In 2001, THFAO, with Bank Hapoalim, bid to control Slovenia's NKBM. By 2002, they were one of three shortlisted bidders.
In 2002 THFAO founded WestEast Bank in Bulgaria, a joint venture with Slovenia's largest bank NLB, which held a 24% minority stake.
Diversifying Investments
A VC and Hedge Fund of Funds was established in 2002 and later THFAO acquired control of IDB, Israel's largest conglomerate, for $840 million. Since, THFAO has invested in controlling stakes or significant positions across various sectors, including financial services, industrials, private equity, hedge funds, real estate, tech, and natural resources, spanning the USA, Europe, Israel, Asia, and Africa.
Prominent in Pharma
THFAO made strategic moves by acquiring control of Hemofarm, a pharmaceutical company, with the aim of solidifying its position as a market leader through organic growth, acquisitions, and expansions into new markets and manufacturing facilities. This strategic vision bore fruit within four years, establishing Hemofarm as a prominent player in the industry. Despite challenges, THFAO demonstrated resilience and adaptability in navigating the complexities of the investment landscape.
Exiting
In 2006, THFAO exited the Israeli conglomerate IDB, sold a 72.5% share in WEB Bank to Slovenia's NLB, and sold Hemofarm to Stada Arzneimittel AG in a landmark Serbia-Germany transaction worth approximately EUR 600 million to mention just a few.