This article is a part of Poland Unpacked. Weekly intelligence for decision-makers
In recent months, 4growth VC had effectively disappeared from the investment landscape. The reason was criminal charges brought by prosecutors against members of its management team in connection with their previous activities at Alior Bank. However, the fund has implemented a remediation plan that has been approved by PFR Ventures and its private investors.
Jan Kastory and Tomasz Pasiewicz have joined the management team of 4growth VC. Both bring many years of experience in the financial and investment sectors.
Jan Kastory co-founded astorya.vc, a fund specializing in early-stage investments in European insurtech and fintech companies. Its portfolio includes, among others, Zelros and Weecover.
Tomasz Pasiewicz is a financial and investment adviser with more than 30 years of experience. He specializes in mergers and acquisitions and business development. Earlier in his career, he worked in investment banking at Schroders and Citigroup. He was also a partner at KPMG, where he led the M&A practice, and later founded Saski Partners.
The new managing partners are joining a fund financed through the PFR Ventures KOFFI public program and capital provided by private investors. The fund has total capitalization of PLN 86.8m (approximately EUR 20.3m).
Remediation plan following the suspension of 4growth VC
The move forms part of a remediation plan implemented by 4growth VC following a period during which its investment activities were suspended. The fund had been managed by former members of the management board of Alior Bank: former chief executive Krzysztof Bachta and former management board members Tomasz Biłous and Marcin Jaszczuk. All three were among a group of individuals charged in connection with decisions made during their time at the bank. The allegations relate to the financing of Zakłady Mięsne Henryk Kania, the meat-processing company that collapsed in 2019.
Because 4growth VC uses capital from the PFR Ventures KOFFI public program, the fund's operations were suspended after the charges were brought. Representatives of the fund reject the allegations and maintain that they are unfounded.
“We would like to confirm that the activities of the 4growth VC team financed through the PFR KOFFI program have been reinstated. This was made possible by the management team's development of a remediation plan, which was approved by all Limited Partners: PFR Ventures and the private investors. The plan focuses on expanding the 4growth team and transferring investment control over the vehicle financed with PFR Ventures capital to its new members,” says Rozalia Urbanek, acting president of the Management Board of PFR Ventures.
Expert's perspective
How does the suspension mechanism for PFR Ventures funds work?
- the occurrence of an adverse event involving key personnel;
- the submission of a notice to remove the management entity;
- an unauthorized change of control.
In each case, the fund enters a restricted-management mode. This means a freeze on new investments and capital calls, while management of the existing portfolio continues. At the same time, the management fee is automatically reduced to 75% of the contractual rate.
The suspension can be lifted only after the public investor approves a remediation plan submitted by the fund's management entity. Once the agreed corrective measures have been implemented, the fund regains its full investment capacity. However, the public investor retains the right to end the suspension even without completion of the full remediation process.
Failure to secure an effective reinstatement may lead to the removal of the management entity, the liquidation of the fund, or other consequences provided for under the RUI, including those related to the fund's committed capitalization.
From the perspective of day-to-day fund operations, the key priority is the implementation of internal early-warning procedures for events involving key personnel.
A fresh start following PFR Ventures' review
According to market sources, PFR Ventures conducted a detailed review of the new management team at 4growth VC. From the perspective of the public institution, a key objective was to eliminate the risk that the newly appointed managers would serve merely in a nominal capacity. Instead, both appointees are well-known figures within the investment and financial community.
Both have declared their full commitment to the fund's further development.
The management team at 4growth VC says the fund is currently finalizing an investment in a startup and is engaged in additional investment discussions in the market. They also acknowledge that, as a result of the earlier suspension, one planned transaction ultimately fell through.
4growth VC returns to the market after restructuring
Following organizational changes, 4growth VC is resuming its investment activity.
“4growth VC has been strengthened with additional expertise, while the new team members were not connected to the circumstances that led to the fund’s suspension. This allowed the fund to meet both the formal requirements set by PFR Ventures and its operational needs,” says Krzysztof Bachta.
Bachta and the two other founders of 4growth VC remain involved with the fund and continue to contribute to its activities. However, they no longer hold voting rights on the investment committee, a role that has been taken over by the newly appointed managing partners.
The changes apply exclusively to 4growth VC KOFFI, the fund established in partnership with PFR Ventures. Prior to launching this vehicle, the management team operated another fund under the same brand. That fund has already completed its investment phase and is currently focused on portfolio management and exit processes. It was not subject to the suspension and continues to operate without any structural changes.
New voting structure in the investment committee
The division of roles and voting rights within the investment committee – where decisions on capital allocations to portfolio companies are made – has been reshaped.
“Operationally, we continue to function as a five-partner structure, and this will remain the case until the allegations are clarified and resolved, although the formal influence of the existing management team is now limited. We are aware that this may be a lengthy process. The fund still has several years of investment activity ahead, which is why we have put in place a structure that allows it to operate independently of the duration of the proceedings,” says Krzysztof Bachta.
He acknowledges that several scenarios for 4growth VC KOFFI were considered, including the termination of its investment activity. Thanks to the support of all private investors, who wished to continue the fund’s operations, work began on developing a solution acceptable to PFR Ventures.
The fund has previously completed investments in two startups.
“Importantly, the addition of Tomek and Janek is not a temporary arrangement. This is a long-term decision, designed to ensure the fund can develop over the coming years regardless of the outcome of our case,” Bachta adds.
Entering 4growth VC amid reputational challenges
How do the new members of the management team approach their roles? They face several challenges, including a reputational crisis triggered by the fund’s earlier suspension.
“Before I decided to join, I asked myself about the fund’s current situation. It was an important consideration, given the potential reputational risk. However, first, the founders of 4growth VC enjoy a very strong reputation in the financial community. Second, the remediation plan was approved both by the fund’s private investors and by PFR Ventures, which sends a very strong signal of trust. Moreover, based on its track record of transactions, I believe 4growth VC is the strongest fintech-focused fund in Poland,” says Jan Kastory.
“For me, the key factor was trust in Marcin Jaszczuk, with whom I had worked in the past. Equally important was observing 4growth VC’s development path – its consistently built portfolio and fund performance. Joining an already established project and contributing my own experience, both from working with large corporations and with entrepreneurs and startups, felt like a natural step,” adds Tomasz Pasiewicz.
Krzysztof Bachta notes that the fund will benefit from the professional experience of both managers.
“I expect 4growth VC to become stronger both in terms of investing in new startups and executing exits. There is a significant problem in the VC market when it comes to exits, so experience in this area is particularly important,” Bachta points out.
Key Takeaways
- The appointment of Jan Kastory and Tomasz Pasiewicz to the management team of 4growth VC is part of a remediation plan introduced following the suspension of the fund’s investment activity. Both managers have assumed investment control over the fund financed under the PFR Ventures KOFFI program. Their nominations were approved by the public investor and private limited partners. The change is intended to enable the fund to continue operating and return to investment activity.
- The suspension of 4growth VC was linked to charges brought against former members of the management team concerning decisions taken earlier outside the fund. In response, a new governance structure was introduced in which the founders remain operationally involved but no longer participate in the investment committee. A key condition for resuming activity was the separation of day-to-day investment decisions from individuals subject to ongoing proceedings.
- Following the completion of the restructuring, 4growth VC declares a return to investing. The fund is already in discussions with startups and is finalizing a new transaction. The managers emphasize that the changes are long-term in nature and were designed to ensure the fund can operate independently of the duration of legal proceedings involving its founders. The case of 4growth VC also illustrates how oversight mechanisms function in funds supported by public capital.