Amundi spins out a second unit

Amundi Private Equity Funds has spun out another unit one month after offloading its North African private equity business to Abraaj Capital. The latest unit to win independence focuses on Central and Eastern Europe and will be called Value4Capital.

Amundi Private Equity has spun out another of its units, offloading its Eastern European-focused arm to its management.

Bill Watson, Leo Gherghina, Piotr Misztal and Jacek Pogonowski, former partners in the SGAM Eastern Europe funds managed by Amundi, have spun out the business and rebranded as Value4Capital. The newly re-branded fund, V4C Eastern Europe, has €125 million in committed capital and will focus on Central European midmarket investments, according to a statement .

In August, Amundi sold its North Africa private equity operations to rival Abraaj Capital.

Amundi, which is backed by Crédit Agricole and Société Générale, is spinning off non-core units and focusing instead on the French market. According to a source close to the group, the spinouts do not signal a lack of confidence in either Eastern Europe or North Africa, and the group has no further plans to spin-out other units.

Value4Capital's four investment team members had been heavily involved in Amundi’s Central European fund since its inception. Three of the members, Bill Watson, Leo Gherghina and Jacek Pogonowski have worked together since 1998 at Baring Private Equity Partners. They then moved to raise and manage SGAM Eastern Europe in 2005, while fourth member Piotr Misztal joined in 2006.

The V4C Eastern Europe fund is now roughly 70 percent deployed, according to someone familiar with the matter. So far the fund has made five investments and plans to make one more before the end of the year. The source said the fund has made no exits to date, with future disposals likely to depend largely on the macro environment. 

Value4 Capital is currently thinking about raising its next fund, according to the source. The fund will still focus on the CEE region, but will aim at a slightly larger ticket of around €200 million.