Central and Eastern European-Focused Funds in Market

by Jessica Duong

  • 20 Feb 2012
  • PE

Preqin’s extensive Funds in Market product reveals that there are 172 private equity vehicles currently fundraising that are targeting investments throughout the Central and Eastern European countries, either exclusively or as part of a wider geographical focus. These ‘CEE’ countries include former Eastern bloc and Soviet Union countries, which extend east from the border of Germany and south from the Baltic Sea to the border with Greece. Collectively, these funds are seeking an aggregate total of EUR 48.3 billion in capital commitments, of which 42% have held at least one interim close, raising an aggregate EUR 8.5 billion.

A breakdown by type of fund shows that real estate funds are the most popular private equity vehicle type to focus investment on one or more CEE states: 51 out of the 172 funds have a focus on the property market. The second most popular fund type that targets CEE countries is venture capital, with 30 funds of this nature currently raising. General venture, early stage and expansion/late stage investment vehicles comprise a little over 5% of the total capital being sought by all funds presently in market that include a CEE state in its geographic focus.

Cinven V has a target size of EUR 5 billion, and is the largest fund on Preqin’s Fund in Market product that includes a CEE state in its investment focus. The fund targets buyout investments throughout Europe, specifically Germany. Capital International Private Equity Fund VI is the second most notable private equity vehicle in terms of target size; the fund is hoping to raise USD 2.5 billion in capital commitments, which will be invested in emerging markets in Latin America, Asia and Eastern Europe via growth equity and control buyouts.

Continue browsing industry reports, publications, conferences, blogs and more on Preqin Insights