Axxess Establishes €150m Emerging Europe Accession Fund

Axxess Capital has announced the establishment of its third fund, the €150 million Emerging Europe Accession Fund. First close was held at an impressive €94 million.

However, the €150 million target is down from an original figure of €200 million. The fund aims to take advantage of low company valuations brought on by the financial crisis, and grow portfolio companies through long-term relationships. South Eastern Europe will be the area the fund will invest in, with special consideration being given to Bulgaria, Romania, and Turkey.

Emerging Europe Accession Fund
The Emerging Europe Accession Fund is a private equity fund designed to invest in small to mid-market companies that are already established and have good growth potential. The fund will invest between €5 million and €20 million per deal, focusing on sectors proven successful through Axxess Capital’s previous two funds. Business services, financial services, healthcare, logistics, and IT are among the many such sectors.

Investors in the Emerging Europe Accession Fund include the EBRD, the EIF, Black Sea Development Bank, DEG, and a host of individual Americans.

Axxess Capital (www.enterprisecapital.ro)
Axxess Capital is an investment management company established in 1995 to provide investment capital to Romania’s emerging private sector.

With help from the U.S Congress and other European investors Axxess Capital’s first fund, Romanian American Enterprise Fund (RAEF).

Axxess investments are typically in the €3m to €20m range with a life of three to seven years. No specific sectors are targeted, but the firm keys on fragmented industries which would benefit from consolidation.

Axxess maintains offices in Bucharest, New York, and Sofia.