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PE and VC funds build companies in CEE

Analysis

CEE is a region of dynamic growth where companies from private equity funds have a positive impact on the economy – this is one of the main conclusions of the report "Private Equity in CEE: Creating Value and Continued Growth" on the role of the private equity industry in building companies in the Central and Eastern Europe (CEE) region published by Invest Europe, an association representing the European private equity, venture capital, and infrastructure investors industry.

The report presents CEE as a region of dynamic growth in which companies from private equity funds have a positive impact on the economy. This can be seen, for example, in an almost 11% increase in employment, the highest among European regions. It mentions technology companies from CEE that have conquered the world and points to the spectacular development of venture capital funds in recent years.

"Central and Eastern Europe is the fastest-growing region in Europe and offers a variety of investment opportunities. Private equity investors are an important source of financing for enterprises and play a key role in professionalizing processes, supporting the development, and entering new markets," Eric de Montgolfier, CEO of Invest Europe, said.

22 companies financed by private equity funds in CEE were analyzed in detail, including nine Polish companies: Anwis, Dino, Dotcard, Home.pl, Novago, PBKM (Famicord Group), Rankomat, Velvet Care, and Wirtualna Polska. These companies went through the entire investment cycle with private equity funds, from investment to exit, in the period 2015-2019.

Individual company profiles show the history and reasons for the investment as well as the transaction structure. They outline the contribution of funds to building the value of companies, to their growth and development, to supporting innovation and activities in the field of ESG (environmental, social, governance). The presentations are precise, show the scale of the companies' growth and the number of new jobs created thanks to it, as well as the amounts invested and return on investment.

"Having invested for three decades in Central and Eastern Europe, I have seen entrepreneurial ideas and ambitious companies springing up in this region. Thanks to private equity support, these companies not only become world-class enterprises but also create jobs, strengthen ESG practices and drive economic growth, while bringing large profits to investors," Thierry Baudon, Chair, Invest Europe, founder of Mid Europa Partners, said.

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