EI’s Fund V holds €200m first close

The Polish private equity firm has held a first close of its €300 million fifth fund, securing commitments from pension funds, insurance companies and financial institutions in the US and Western Europe.

Enterprise Investors, the Central European private equity investor, has held a first closing of its new €300 million ($380 million) fund, Polish Enterprise Fund V LP.

Polish Enterprise Fund V, the largest private equity fund raised to date in Central Europe, will make investments ranging from €3 million up to €45 million. The €200 million first close includes commitments from pension funds, insurance companies and financial institutions in the US and Western Europe, although further details were not disclosed.

“Polish Enterprise Fund V includes new investors to the region as well as investors experienced from our previous funds. Their decision to join us in PEF V confirms EI’s track record and Poland’s attractiveness for investors. The first investments of Polish Enterprise Fund V will be made in the next few days,” said Jacek Siwicki, managing partner of Enterprise Investors.

Polish Enterprise Fund V will invest in companies in the financial services, consumer products, telecoms, retail, healthcare, manufacturing and environment sectors. Transactions considered by PEF V will primarily be expansion and buyout capital.

Polish Enterprise Fund V will focus on Poland, although up to 30 percent of the fund’s capital may be invested in other Central European countries, including Romania, Slovakia, Czech Republic, Hungary, Bulgaria and the Baltic countries.

EI did not use a placement agent for the fundraising.

Together with the capital of Polish Enterprise Fund V the company’s funds under management will exceed $1 billion. As of January 2004 EI’s private equity funds had invested $684 million in more than 92 companies across Poland, Romania, and Slovakia. The funds have fully exited 58 investments and returned $659 million to their investors.