With Enterprise Investors’ Polish Enterprise Fund VI reaching a point of full investment, the private equity firm intends to raise a new fund in 2011. Polish Enterprise Fund VI was closed in 2006 with capital of €658 million. The fund was oversubscribed twice and fund raising was completed in only three months. In addition, Enterprise Investors closed its first VC fund in 2008 with total capital of €100 million.
Polish Enterprise Fund VII
Polish Enterprise Fund VII (PEF VII) will begin fundraising sometime in mid-2011. It will focus on projects in Romania and several other countries in South Eastern Europe.
If it follows the same pattern as its predecessor, typical investments will range between €30 million and €60 million and will result in Enterprise investors gaining majority stakes of up to 100% in portfolio companies.
PEF VII will operate as a buyout fund seeking to help business owners who are looking to take their companies to next stage of development whether by expansion, capital improvements, or establishing new outlets.
Enterprise Investors (www.ei.com.pl)
Enterprise Investors was established in 1990 after the implementation of the U.S. government-funded Polish-American Enterprise Fund, an investment vehicle designed to provide equity funding for the Polish private sector. The firm has invested in excess of €1.3 billion in more than 100 projects in the last 20 years, while raising more than seven funds worth a combined total of €1.7 billion.
Enterprise Investors invests mainly in private, medium-sized business with an average horizon of three to seven years. Portfolio companies receive EI support in strategic planning, financial decision-making, and professional recruitment. EI prefers to stay away from day-to-day operations. While Polish investments are EI’s top priority, the firm looks at other potential projects that will help expand its reach in Central and Eastern Europe.