Generali teams with PPF Group for €2.3bn fund

The two institutional backers have provided a €1.3bn anchor investment for the vehicle, which will invest in Central and Eastern Europe and the CIS. It will be the firm’s first third-party fund.

PPF Partners, a joint venture between asset management firm PPF Group and Italian insurance giant Assicurazioni Generali, intends to raise a fund of up to €2.3 billion this year to invest in businesses across Central and Eastern Europe and the Commonwealth of Independent States.

The fund, PPF Partners’ second private equity vehicle, has already garnered €1.3 billion, having been anchored by two commitments of €650 million each from its sponsors PPF Group and Assicurazioni Generali.

In the second half of the year, the firm intends to raise further commitments from third party investors – both institutional and private – totalling between €500 million and €1 billion, according to a spokesman. This will be the first time the nascent private equity manager has sought to raise external money.

The Czech Republic: one of PPF Partners' target geographies

PPF Partners is currently investing its first fund, a €650 million vehicle funded entirely by its two sponsors. It has approximately €200 million in dry powder left, having made investments in various sectors in the Czech Republic, Romania and Ukraine.

The firm is aiming to achieve €5 billion in assets under management within the next five years, according to a statement.

PPF Group is headquartered in the Netherlands and owned and run by Czech billionaire Petr Kellner. Forbes magazine ranks Kellner at number 76 on its list of global billionaires with an estimated net worth of $6 billion.

PPF Group, which has around $8 billion in assets under management, has been collaborating with Assicurazioni Generali in the insurance sector since 2007.

PPF Partners, the two institutions’ joint venture private equity manager, is 72.5 percent owned by PPF Group and 27.5 percent held by Assicurazioni Generali.