Global buyout firm Advent International has announced the closing of ACEE IV, its fourth fund for investment across Central and Eastern Europe, with EUR1bn in capital commitments.
Global buyout firm Advent International has announced the closing of ACEE IV, its fourth fund for investment across Central and Eastern Europe, with EUR1bn in capital commitments. Four of the largest investors in ACEE IV are GIC Special Investments, AlpInvest Partners, California State Teachers’ Retirement System and the European Bank for Reconstruction and Development.
Since raising its first fund for the region in 1994, Advent has financed 35 companies in Poland, the Czech and Slovak Republics, Hungary, Romania, Bulgaria and Turkey. The firm has local teams in four countries, supported by Advent’s other investment teams on four continents.
ACEE IV will invest in companies requiring between EUR30m and EUR100m in equity to build market leadership and for cross-border expansion. As with previous funds investing in the region, the team can also draw upon additional capital from the firm’s global funds for larger deals. Advent’s most recent global fund, GPE VI, raised EUR6.6bn earlier this month.
Over the past three years, Advent has backed eight companies in five Central and Eastern European countries and wholly or partially exited seven investments, including Bulgaria Telecommunications Company, which was sold to AIG Capital Partners in a transaction valuing BTC at EUR1.66bn, Romanian generic pharmaceuticals business Terapia, sold to Ranbaxy Laboratories for USD324m, and Zone Vision, sold to chellomedia, the European content division of UnitedGlobalCom, in a transaction valuing the company at USD80m.
‘Central and Eastern Europe is now on the map for investors who are attracted by its combination of high growth and stability,’ says Advent managing partner Joanna James. ‘This has served to raise the profile of the region, which is to the benefit of us all.
‘Advent has invested three funds across Central Europe since 1994; there are many more businesses there that offer real potential for growth and cross border expansion. What we bring to these businesses is our long experience of the region alongside Advent’s global network in 15 countries.’
Managing partner Chris Mruck adds: ‘Many of our investments have broken new ground in the region, whether at the time of investment or of exit. Fourteen years on from our first deal, the region remains diverse and fast-growing. Some markets are now relatively mature, with buyouts the norm; others are still developing and offer great opportunities for pure growth.’
Founded in 1984, Advent International has buyout offices and more than 115 investment professionals in 15 countries across Western and Central Europe, North America, Latin America and Asia. Since its establishment, Advent has raised USD24bn in private equity capital and completed more than 200 transactions valued at more than USD36bn in 35 countries.
