ARX Equity Partners (ARX), a lower mid-cap focused private equity firm operating in Central Europe, has secured the first close of its fifth fund, ARX CE V (the Fund), with total subscribed commitments of €78m.
The fund, which has a target of €100m and hard-cap of €125m, will continue to execute ARX’s strategy of investing in lower mid-cap SMEs in selected Central European countries, with a focus on B2B businesses operating in areas such as manufacturing and business services, and select sub-sectors including healthcare, education, and lifestyle services.
It is anticipated that the Fund’s majority will be deployed within the Czech Republic, which possesses highly competitive, export-oriented precision manufacturing and engineering industries. However, ARX will also consider neighbouring Central European countries offering attractive investment environments, such as Slovenia, where it has completed five platform investments as well as several add-on acquisitions over the last decade.
Investors in the Fund include the European Investment Fund (EIF) and the European Bank for Reconstruction and Development (EBRD), in addition to other institutional investors, several family offices, and private investors respectively.
To date, ARX has completed 33 platform investments and numerous add-on acquisitions during its 27-year operating history across the region.
