Investment Allocations

Insurers acquire taste for CEE funds

They accounted for 7% of CEE fundraising in 2017, having committed nothing in the previous two years, research has found.

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Insurance companies developed an appetite for Central and Eastern Europe private equity funds last year, according to new research.

These investors accounted for 7 percent, or €91 million, of CEE fundraising in 2017, having committed nothing in the previous two years, Invest Europe’s CEE Private Equity Statistics found. CEE fundraising jumped 46 percent to €1.3 billion last year.

Pension funds were less supportive, contributing just 5 percent, or €63.1 million in 2017. This is compared with 16 percent, or €138 million, the previous year.

Funds of funds committed 31 percent of all capital raised in 2017, up from 21 percent in 2016. Government agencies and academic institutions, foundations or endowments, were the next largest contributors at 26 percent and 8 percent respectively.

European limited partners outside CEE provided just 38 percent of committed capital last year, down from 64 percent in 2016. Investors outside Europe more than tripled their share to 26 percent from 8 percent.