€100m Southeastern European fund launched

GED Group, Bank Austria-Creditanstalt and Caja Madrid have teamed up to launch a €100m private equity fund for the Southeastern European region.

GED Capital Development, part of the GED private equity group operating in the Iberian Peninsula and Eastern Europe, will manage a new €100 million ($122 million) private equity fund dedicated to Southeastern Europe.

The fund has secured cornerstone investments worth €10 million each from Bank Austria-Creditanstalt and Spanish financial services provider Caja Madrid. The remaining investment is anticipated to come from private investors and multilateral institutions active in the region.

The fund will invest between €3 million and €10 million in medium sized companies in Romania, Bulgaria and neighbouring countries.

GED has previous experience in the region, having deployed €54 million through the management of GED Eastern Fund I-RPPF since 1996. The group, with offices in Madrid and Bucharest, currently manages funds in excess of €140 million.

GED Group is supported by institutional investors including The Caisse de depot et placement du Quebec, Axis-Ico and Bank Austria-Creditanstalt.

Enrique Centelles, president of the GED Group, said in a statement: “We are very proud that a Spanish private equity group such as GED is presently one of the top private equity companies in Eastern Europe. The agreement to promote the new fund will allow us to contribute the experience we have acquired in Romania and expand upon our leadership in the region through new investments.”

Post EU-accesion in May, Eastern Europe continues to attract private equity interest. Earlier this month, Polish-headquartered Enterprise Investors closed their latest fund, Polish Enterprise Fund V, which is dedicated to Central and Eastern Europe, on €300 million.