P&S targets €100m for Eastern Europe

Eastern European-focused financial advisor P&S East Growth is looking to raise more than €100m for its second Luxembourg-based private equity fund.

Slovenia-based financial advisor P&S East Growth has launched its second private equity fund, targeting more than €100 million.

The firm's first fund, P&S Growth Luxembourg I, closed on €25 million in 2006. Now fully invested, Fund I was used to invest in mid-cap growth companies in the Ukraine, Romania and Bulgaria. A pipeline of ready deals within the service industry in its target regions prompted the firm's decision to raise another and larger private equity fund, investment director, Bojan Kunovar, said in an interview.

P&S hopes to hold a first close on P&S Growth II during the second half of this year and is looking to attract international investors, having raised its previous fund entirely in its native Slovenia.

“Fundraising is challenging. We have been in contact with investors for quite a while [although not fundraising] and we can see that they are taking slower steps in the fundraising process,” Kunovar said.

We can see that investors are taking slower steps in the fundraising process.

Bojan Kunovar

The firm made five investments in total from its first fund. This included the recent acquisition of Bulgarian internet telecommunications provider Powernet as an add-on for a Bulgaria-based competitor, Bol.bg, in January. The combined entity now has more than 30,000 subscribers to its internet services.

E&S East Growth is a financial consultancy which was established 19 years ago, operating from Slovenia but providing services across Croatia, Serbia, Montenegro, Bosnia and Herzegovina, Albania, Macedonia, Kosovo, Bulgaria, Ukraine, and Romania. Both private equity funds are managed from the firm's Luxembourg office.