Enterprise closes €300m central European fund

Alpinvest, CalPERS and the EBRD are among the institutions that have signed up for Enterprise Investors’ fifth and largest fund to date.

Polish-headquartered private equity firm Enterprise Investors has announced the final closing of its €300 million ($362 million) Polish Enterprise Fund V.

The oversubscribed fund, which was launched in January 2004, will target investments in Poland and Central and Eastern Europe. The types of investments primarily considered by the firm will be buyouts and providing expansion capital, with commitments ranging from €3 – €45 million per investment.

The fund includes commitments from new and returning limited partners including Alpinvest, Bank Austria Creditanstalt, CalPERS, European Bank for Reconstruction and Development (EBRD), European Investment Fund (EIF), MetLife, Partners Group and a number of other financial institutions from Europe and the US.

Commenting on the close, managing partner Jacek Siwicki said: “Interest from such high-quality investors confirms the attractiveness of the region. We see new investment opportunities for PEF V, especially in buyouts, resulting from the impressive growth of the Polish economy and the positive effects of the EU accession.”

The fund has made two investments to date, to the value of almost €30 million. In May, Enterprise Investors acquired 75 percent of Harper Hygienics, a Polish skincare product manufacturer. The $26 (€22 million) million buyout was partly leveraged with bank debt.

In June, Enterprise was part of the Viva Ventures consortium, led by Advent International, which acquired a 65 percent stake in BTC, the state-owned Bulgarian Telecommunications Company.

Enterprise Investors has around $1.1 billion (€0.9 billion) currently under management and has invested $750 million in 93 companies across Central and Eastern Europe.

In addition to the new fund, the firm also manages the $300 million Polish Enterprise Fund IV, the Polish Enterprise Fund, the Polish Private Equity Funds I and II and the Polish-American Enterprise Fund. To date, those funds have fully exited 62 investments, returning almost $700 million to investors.