Emerging Europe Accession Fund targets €200m

The team behind the 2006 Balkan Accession Fund is marketing its successor, which may garner a €40m commitment from the EBRD.

The managers of the Balkan Accession Fund, a €110 million 2006 vintage private equity fund, are currently raising a €200 million vehicle to invest across five central and southern European countries.

The Emerging Europe Accession Fund will make equity and mezzanine investments in medium-sized growth companies in Romania, Bulgaria, Turkey, Moldova and Ukraine, according to a document from the European Bank for Reconstruction and Development (EBRD)

The EBRD, which is dedicated to building markets and promoting economic growth in emerging economies across Eastern Europe and Central Asia, is currently considering a commitment of up to €40 million to the fund. Commitments are being sought from other international finance institutions, banks and private investors.

The fund will be managed by Axxess Capital 3, a limited liability company registered in the Netherlands Antilles, which is led by managing partners Horia Manda in Romania and Thomas Higgins in Bulgaria.

The EBRD is already familiar with the management team having previously backed the Balkan Accession Fund, which has since its 2006 launch made seven investments and exited two, generating 3.3x its money and an internal rate of return of 73 percent, according to the firm.