Eastern Europe-focused Fundraising

by Louise Maddy

  • 17 Oct 2011
  • PE

Preqin data reveals there are 100 funds currently in market focusing on Eastern Europe, collectively targeting an aggregate EUR 23.5bn in capital. Of these funds, 61 focus solely on investing in the region. 44% of the 100 East Europe-focused funds have had at least one interim close, attracting EUR 3.8bn in aggregate capital.

There are 25 real estate funds in market, making these the most numerous fund type, seeking a combined EUR 6.3bn, the largest aggregate capital sought. Venture capital funds account for the second largest number of funds on the road with 18 such vehicles currently seeking EUR 1.5bn. Growth funds are the third most numerous, with 16 vehicles targeting EUR 2.9bn.

The three largest funds currently on the road are Capital International Private Equity Fund VI, AVG CIS Agricultural Opportunities Fund and InfraMed Infrastructure fund. Capital International Private Equity Fund VI is a balanced fund which incorporates East Europe as part of a broader geographic focus and is targeting USD 2.5bn. AVG CIS Agricultural Opportunities Fund is a buyout fund focusing on food and agricultural investment opportunities in Russia with a target of USD 1.5bn. InfraMed Infrastructure fund is the third largest fund on the road seeking EUR 1bn in aggregate capital to invest in East Europe as part of a broader geographic focus.

Between January and October 2011, 21 Eastern Europe-focused funds have reached a final close raising EUR 3.6bn in capital commitments. The largest of these was the ECE European Prime Shopping Center Fund, which achieved a final close of EUR 775mn in August 2011. The real estate vehicle focuses on large properties that combine upscale stores with retailers such as butchers and bakeries. The vehicle can invest throughout Europe, but predominantly focuses on the property markets of Germany, Poland, Hungary, Czech Republic, and Austria.

There were 21 Eastern Europe-focused funds that closed in 2010 having raised an aggregate EUR 2.2bn. This represents a 46% drop in terms of number of funds and 68% in terms of aggregate capital raised from 2009 figures when 39 funds attracted just over EUR 6.9bn in capital commitments.

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