Investors

Arx holds €83m first close

The team formerly known as DBG Eastern Europe is roughly two-thirds of the way toward reaching its €125m target, which is nearly double the size of its predecessor fund.

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Arx Equity Partners has held an €83 million first close on its third Central and Eastern Europe fund focused on lower mid-market investments.

Arx was formerly known as DBG Eastern Europe, but rebranded earlier this year after spinning out from German private equity firm Deutsche Beteiligungsgesellschaft. Its eight-person team is led by co-managing partners Jacek Korpala and Brian Wardrop. The firm’s previous fund raised €67 million in 2004.

Brian Wardrop

Launched at the start of 2008, Arx III is targeting a final close of €125 million and counts as its largest limited partners the European Bank for Reconstruction and Development, the European Investment Fund and Alpha CEE II, a €300 million Central and Eastern Europe fund of funds managed by Alpha Associates.

“Arx III represents a continuation of the strategy we have pursued over the past several years with DBG II; and our geographic focus and investment style are well-suited for the current market environment,” Korpala said in a statement.

 

Jacek Korpala

Wardrop added that “succession-driven deal flow in the CEE region is increasing”.

Arx III will write equity cheques ranging from €3 million to €15 million per transaction.

The firm said it recently exited its 2006 investment in Slovenian gasket maker Donit Tesnit, realising a return of 3 times its investment and a 58 percent internal rate of return.

In late September Arx acquired Lanex and Singing Rock, respective manufacturers of rope and climbing equipment in the Czech Republic. Financial details were not disclosed, though Arx said it obtained financing from CSOB and UniCredit banks.