Krokus Private Equity today announced the first close of its latest fund, Nova Polonia Natexis II Private Equity Fund at €52 million ($67 million) against a target of €75 million and a hard cap of €100 million.
The fund will target mid-market companies in the manufacturing, services, distribution, transportation and construction materials sectors in Poland.
Investments from the latest fund will mark the first deal activity at Krokus since 2004 when the company was still under the ownership of its parent Allied Irish Bank.
Natexis Private Equity; a French investor, the European Bank for Reconstruction and Development, InvestKredit; a central European bank, and one other investor, committed to the fund.
Acanthus Advisers, an independent private equity advisory firm, is acting as sole financial advisor and placement agent for the fund.
Connor O’Keefe, associate, Acanthus Advisers, said: “The resurgence in the Polish economy and the growing sophistication of the local private equity market is attracting an increasing number of international investors. The fact that a number of pan-European funds are flying out to look at deals in the CEE is a testament to the quality of the investment opportunities in the region. However, all of these investors are looking at the upper end of the market, particularly in Poland, and are missing great opportunities in the mid market. By focusing solely on the Polish mid market Krokus aims to benefit from these opportunities”
In ten years Krokus has advised three private equity funds, making a total of 24 new investments and committing €80 million of advised funds. The team has completed 52 exits and has sat on the boards of more than 70 companies.
Krokus’ partners and Natexis Private Equity set up the firm following the partners’ buy-out from Allied Irish Bank. Krokus manages two other Polish private equity funds, NIF Magna Polonia and Prospect Poland.