Enterprise Investors invests in cinemas

The Warsaw-based private equity group has invested $3m in a 39 per cent stake in Kinoplex, Poland’s largest cinema operator.

Enterprise Investors, manager of the largest group of private equity and venture capital funds in Central Eastern Europe, has invested $3m (E3.44m) in Kinoplex, Poland’s largest cinema operator.

The investment forms part of a $23m investment project that will see Kinoplex construct five cinema complexes in Polish cities during the next two years. Kinoplex will cover the remainder of the funding through own funds, credits and leasing.

Enterprise Investors managing director Jacek Siwicki said he was attracted to the Kinoplex strategy of targeting new markets within Poland. The second phase of development will see Kinoplex open cinemas in four other Polish cities.

Enterprise Investors made the investment via its Polish Enterprise Fund and Polish Enterprise Fund IV. Siwicki believes the most likely exit will be via a stock market flotation, although he has not ruled out a strategic sale. Enterprise Investors' usual investment horizon is three to seven years.

Enterprise Investors manages the largest group of private equity and venture capital funds in Poland and in Central Eastern Europe. Since 1990 it has invested over $650m in 85 projects.