Exclusive: Mid Europa

The firm has amassed about €800m toward a €850m target.

Mid Europa Partners, a Central and Eastern-European focused firm, is nearing its €850 million revised target for its fourth fund, according to several sources familiar with the matter.

It is understood Mid Europa has raised approximately €800 million for the vehicle, which held a first close on €665 million in January.

Mid Europa declined to comment.

Mid Europa is no longer actively marketing the fund, but a small part of the team is devoted to wrapping up the final stages of the fundraising including legal matters. The firm is expected to hold a final close in or just after the summer. The majority of the team is now focused again on investing, one of the sources said. Mid Europa hasn’t put any of the capital in Fund IV to work, but the firm “is reasonably advanced on two deals” in the region, the source said.

More than half of Mid Europa’s LPs have re-upped, one of the sources said. It is understood the fund has fewer LPs than in the last fund, yet the commitments are higher, the source added. AlpInvest Partners, HarbourVest Partners, the European Bank for Reconstruction and Development (EBRD) and Singapore sovereign wealth fund GIC are among the LPs in Fund IV.

Mid Europa originally targeted €1 billion for its latest fund, which came to market in February 2013, but agreed with LPs to cap the fund at €850 million amid concerns that the fund would be too large for the deals in the region, which have dropped in size in recent years. Another reason for the cap was that Mid Europa wanted to continue to offer 50 percent of each fund in co-investments.

With the GP commitment and co-investments combined, the firm will have between €1.2 billion and €1.5 billion available to invest – a similar amount to its Fund III, a €1.53 billion 2007-vintage, which is almost fully invested.

For a more in-depth look at Central and Eastern Europe, be sure to check PEI’s June issue, which will feature a panel discussion with GPs and LPs operating in the region.