EBRD Boosts Private Equity Financing in Central and Eastern Europe with €80 Million Investment

EBRD Boosts Private Equity Financing in Central and Eastern Europe with €80 Million Investment

(IN BRIEF) The European Bank for Reconstruction and Development (EBRD) has committed €80 million to Poland-based Enterprise Investors’ tenth private equity fund, aiming to enhance private and entrepreneurial initiatives in central and eastern Europe. The investment will support the development of alternative funding sources, strengthen the region’s financial sector, and promote the growth of the corporate sector. EBRD’s long-standing partnership with Enterprise Investors reflects its commitment to the development of local companies and increased competitiveness through better access to equity capital. The investment comes amidst a tightening global fundraising outlook, compounded by the impact of Russia’s invasion of Ukraine. Enterprise Investors, a leading private equity firm in the region, has a strong track record with nine funds raised, €2.2 billion invested, and 137 companies exited. The EBRD has been investing in private equity funds since 1992, providing over €5 billion through 237 investments, with an annual commitment of €250 million to €350 million in private equity funds across the EBRD regions. The EBRD’s investments in Poland have totaled nearly €13 billion, focusing on promoting alternative funding, supporting the green economy, and developing the capital market.

(PRESS RELEASE) LONDON, 7-Jul-2023 — /EuropaWire/ — The European Bank for Reconstruction and Development (EBRD) is boosting the availability of private equity financing in central and eastern Europe by committing €80 million to Poland-based Enterprise Investors’ tenth private equity fund.

The Bank’s investment in Enterprise Investors Fund IX is set to promote private and entrepreneurial initiatives in the region by supporting the development of alternative funding sources. It will also strengthen the region’s financial sector and support the growth of its corporate sector.

The EBRD is a major investor in the Polish and central and eastern European equity markets and views their further development as vital to the development of local companies. Better access to equity capital will also increase the overall competitiveness of portfolio companies.

Anne Fossemalle, Director of the EBRD’s Fund Investments team, said “We are pleased to support a long-standing EBRD client like Enterprise at a time when the global fundraising outlook is tightening, exacerbated by the economic, geopolitical and humanitarian impact of Russia’s invasion of Ukraine.”

Enterprise Investors is one of the largest and oldest private equity firms in central and eastern Europe and a long-standing partner of the Bank. Based in Warsaw, the firm has raised nine funds, investing and committing €2.2 billion through 154 investments, and has already exited 137 companies.

The EBRD has been investing in private equity funds since 1992 and has provided more than €5 billion through 237 investments. Each year, the Bank commits between €250 million and €350 million to private equity funds across the EBRD regions.

Since it started operating in Poland, the EBRD has invested almost €13 billion in over 500 projects in the country. The Bank’s priorities in Poland include promoting alternative sources of funding for the corporate sector, supporting the green economy and developing the capital market.

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SOURCE: EBRD