Private equity and venture capital investment in Central and Eastern Europe last year hit its highest amount since 2009, according to data from Invest Europe.
The total investment amount increased 25 per cent year-on-year to EUR1.6 billion, with the number of companies backed matching 2014’s record level.
The figures are taken from Invest Europe’s Central and Eastern European Private Equity Statistics 2015 report.
“Last year’s increase in regional investment activity, at a new post-financial crisis high, points to a healthy and evolving market,” says Robert Manz, managing partner at Poland’s Enterprise Investors and chairman of Invest Europe’s Central and Eastern Europe Task Force. “Central and Eastern Europe continues to develop dynamic businesses and when the time comes to exit, these private equity-backed companies can have the international reach to appeal to global acquirers.”
It was another strong year for private equity exit activity in the region, with a record 97 companies exiting at a total value of EUR1.2 billion – measured at historical investment cost – the third highest year on record. Trade sale was the most prominent exit route, accounting for over half of the divestment value at historical cost. Public market exits made a strong showing, comprising 17 per cent of total exit value at cost.
After 2014’s fundraising high, driven by some of the region’s largest fund managers, the capital raised last year was at a more subdued level of EUR418 million, as fund managers were more focused on investments and exits.
Across the Continent, total investments increased by 14 per cent year-on-year to EUR47 billion, while exits, measured at historical investment cost, matched 2014’s record-breaking EUR40 billion.
“The region has a number of innovative start-ups and interesting companies employing a well-educated and competitive workforce, and the experienced private equity and venture capital investment managers are perfectly positioned to harness their potential,” says Manz.
