Central and Eastern Europe-focused Fundraising

by Anna Strumillo

  • 06 Jun 2011
  • PE

Preqin data reveals that there are currently 44 Central and Eastern Europe-focused funds (including Russia but excluding other CIS countries) on the road targeting an aggregate EUR 6.7bn.  Of these funds, 69% have already had at least one interim close attracting an aggregate EUR 1.4bn.

There are 17 real estate funds in market, making them the most numerous fund type, seeking a combined EUR 2.9bn, the largest aggregate capital sought.  Venture funds account for the second largest number of funds on the road with 16 currently seeking EUR 2bn. Mezzanine funds are the third most numerous, withfour vehicles targeting EUR 0.8bn.

The three largest funds currently on the road are Russia-focused real estate funds VTBC-Ashmore Real Estate Partners I, BPT Arista and Barwa Gazprombank Russia Real Estate Fund targeting EUR 500mn, EUR 400mn and USD 500mn respectively.

In 2011-to-date two CEE-focused funds have reached a final close raising EUR 171mn in capital commitments. The larger of the two was South East European Heritage Property Fund, which achieved a final close of EUR 150mn in May 2011.  The fund invests in high quality city centre residences in key markets including Ljubljana, Belgrade, Bucharest, Zagreb, and Istanbul, where there is a growing shortage of these properties. It targets properties which have historical, cultural and architectural value in city centres in order to preserve the heritage of the city. The fund can also invest in hotel and leisure developments.

There were eight CEE-focused funds that closed in 2010 having raised an aggregate EUR 414mn. This represents a 50% drop in terms of number of funds and 84% in terms of aggregate capital raised from 2009 figures when 16 funds attracted just over EUR 2.6bn in capital commitments.

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