East Capital launches $150m fundraising

The Central and Eastern European buyout firm is looking to reap the benefits of the growth prospects for the new member states of the European Union.

East Capital has launched fundraising for a $150 million (€94.3 million) fund to invest in both listed and unlisted companies in the Central European and Baltic markets, according to a statement.

The countries it will invest in include the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Slovakia and Poland.

The fund will look to benefit from the region’s recent accession to the European Union and future assumption of the euro in the member states. The region is expected to receive approximately €127 billion in EU convergence funds, or 20 percent of total annual GDP between 2007 and 2013, the statement said.

Andras Szalkai, director and member of the portfolio management team at East Capital, said in a statement that these factors encouraged good growth and limited risk for the region that his fund will seek to mirror.

Last week Advent International raised a €1 billion Central and Eastern European fund at its hard cap.