EBRD to commit €20m to GED Capital fund

Spanish-based private equity firm GED Capital Development will receive up to €20m from the European Bank for Reconstruction and Development for its second vehicle.

The European Bank for Reconstruction and Development (EBRD) has announced that it will make a commitment of up to €20 million ($24 million) in equity in GED Capital Development’s Bulgaria- and Romania-focused second fund.
 
GED Eastern Fund II held a first close in May 2005 on €51 million and has a final target of €100 million. It was launched in June 2004 with €25 million in commitments from cornerstone investors Caja Madrid, Bank Austria Creditanstalt and Spanish bank Instituto de Credito Official.
 
GED Capital Development has invested €2.5 million in the fund, while AXIS ICO committed €5 million with the remainder of the first close total coming from Iberian financial companies, insurance companies and family offices.
 
GED Eastern Fund II will invest in small and medium-sized enterprises primarily in Romania and Bulgaria. Target sectors include retail, distribution, healthcare, logistics and media. The fund is expected to make investments of between €3 million and €10 million.
 
According to GED Capital Development, GED Eastern Fund II had an original final target date of April 2006.
 
GED Eastern Fund II is the successor to the Romanian Post Privatisation Fund, a €54 million vehicle launched in 1996 by the EBRD and managed by GED Capital Development.
 
Founded in 1996, GED Capital Development currently has more than €100 million under management and has offices in Spain, Portugal, Romania and Bulgaria.