Innova 3 raises E110m in first closing

The Polish venture capital firm hopes to get to a E150m final closing in late 2002.

Innova Capital has announced the first closing of its Innova/3 LP fund. The fund, which is earmarked for Central European investments with particular emphasis on Poland, has so far raised E110m, with managers confident of hitting the final closing target of E150m in the second half of 2002.

According to Magdalena Nowak at Innova Capital, the fund is proving popular across Europe. “We have received a lot of interest from European multinationals looking to invest in Central Europe. We are looking to invest between E5-15m in firms with strong cross-border links.”

Innova Capital has invested E120m in Polish companies to date. The Innova funds invest in business services, including media, IT, telecom, and financial services. Innova also considers opportunities in manufacturing.

If, as expected, the final closing target of E150m is reached, Innova Capital will have funds in excess of E350m. The firm runs two other funds, Innova/98 and Poland Partners. Innova/98 is a E140m private equity fund of which 60-65 per cent have been invested in Poland. Its investors are comprised of major American and European institutions that invest globally. Poland Partners is a E70m venture capital fund for investment in Poland. Financed entirely by private American institutions, the fund started operations in April 1994. Its portfolio consists of 14 companies.