A record 290 companies in Central and Eastern Europe received private equity and venture capital investment in 2014, as capital invested by funds across the region increased by 66 per cent on previous year to EUR1.3 billion.
That’s according to new data released by the European Private Equity and Venture Capital Association (EVCA), which reveals that fundraising increased in 2014 more than threefold to EUR1.5 billion and exits stood at EUR1.3 billion (measured at original cost), up 32 per cent on previous year.
The figures come from the Central and Eastern Europe (CEE) Statistics 2014 report, a 50-page paper tracking private equity and venture capital activity in the region. The data shows a broad improvement in private equity fundraising, investment and divestment activity in CEE, with rising participation from domestic and regional investment firms, as well as increased interest from pan-European and global private equity investment groups.
“Private equity and venture capital investment activity in CEE more than lived up to expectations in 2014. A record number of companies received investment in 2014, driven by strong venture capital investment across the region. Larger investments also prospered as demonstrated by the sharp rise in buyout activity and the first EUR1bn enterprise value investment in CEE since 2009,” says EVCA Chief Executive Dörte Höppner (pictured).
“The figures in the 2014 report underline the encouraging macroeconomic trends in the region. Higher GDP growth rates, low inflation and falling unemployment in many CEE countries created an attractive backdrop for private equity firms and international investors to focus on region. We encourage more investors to investigate the attractive opportunity CEE presents,” says Robert Manz, Chairman of the EVCA CEE Task Force.
