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EBRD to commit up to €50m in SEE fund

Royalton Partners II, a $250m target vehicle focusing on South-eastern European companies servicing local markets, is to receive up to €50m from the European Bank for Reconstruction and Development.

The European Bank for Reconstruction and Development (EBRD) has announced that it will invest up to €50 million in a South-eastern Europe focused private equity fund.

The EBRD said that it will invest up to 20 percent of the aggregate fund size of Royalton Partners II, a new vehicle managed by the Prague arm of Central Europe-focused private equity firm Royalton Partners.

Royalton Partners declined to comment on the fundraising.

Royalton Partners II has a target of €250 million ($317 million), according to the EBRD, and is expected to reach a first close of €100 million this year.

The fund will primarily target investment opportunities in companies servicing local markets in South-eastern Europe, including Romania, Bulgaria, Croatia, Serbia and Montenegro, Bosnia and Macedonia. The vehicle will typically make equity investments of between €10 million and €20 million per transaction.

Royalton Partners II is the successor fund to Royalton Capital Investors, which closed on $94 million in 1999. Investments from the debut fund include Estonian cable TV company Starman Cable TV; Hungarian media group Lang Holding; Polish mobile telephone distribution network mPunk Polska; and Hungarian residential mortgage bank First Mortgage.

Royalton Partners was established in 1997 by Nigel Williams, Roman Babka, Ivan Holmouth and Przemyslaw Bielicki. The four previously founded Creditanstalt Investment Company, a joint venture in Prague with the Austrian Creditanstalt Group, which managed the $100 million (€79 million) Creditanstalt Czech Investment Fund.

Royalton Partners has offices in Zurich, Prague, Warsaw and Budapest.