EI launches new €300m fund

Enterprise Investors, the Polish private equity firm, has officially launched its fifth fund, which will aim to raise €300 million ($377 million) for investment in Poland and other countries in the region.

A new fund with a target size of €300m ($377 million) has been launched by Enterprise Investors, the Warsaw-based private equity firm.

Speaking at a news conference, Enterprise Investors’ managing partner Jacek Siwicki said: “The fund will be established in the next several weeks. About 30 percent of the fund may be invested in the [Central and Eastern European] region and the rest in Poland.”

Enterprise Investors, which claims to be the largest private equity firm in Central Europe, has around $725 million (€577 million) under management and has invested in 91 companies since it was formed in 1990. It currently manages Polish Enterprise Fund IV, the Polish Enterprise Fund, the Polish Private Equity Fund I and II and the Polish-American Enterprise Fund.

The firm has achieved 57 exits and returned almost $660 million (€525 million) to investors. It most recent exit, towards the end of last year, was the flotation of Stomil Sanok, a Polish manufacturer of rubber components used by European automotive companies. It was the first IPO of a private equity-backed business on the Warsaw Stock Exchange and delivered a 6.8 multiple on invested capital.

Enterprise Investors’ previous fund, Polish Enterprise Fund IV, raised $300 million (€239 million) in 2000 and included commitments of $50 million (€50 million) each from The European Bank for Reconstruction and Development (EBRD) and the California Public Employees Retirement System (CalPERS). According to reports, the EBRD is expected to make a further commitment to the latest fund.