Private Equity Investment In Central And Eastern Europe Hits Record High


Private equity investment in Eastern and Central Europe recorded a year-on-year rise amounting to 113 percent. Last year, it also reported a record high that amounted to €3.6 billion (£3.23  billion) in 2017.

A research that was conducted by Invest Europe revealed that in Europe, investors who are from outside the region provided 38 percent of the capital that was raised, while 26 percent was contributed by global backing that was driven by investors.

The increase indicates a trend that was observed across Europe as the total amount of investment rose year on year to €71.7 billion. It is considered the second highest level that is on record.

Robert Manz, a managing partner at Enterprise Investors, stated: “International investors are drawn to the region’s attractive economic growth, strong consumer spending and private equity fund managers with proven ability to identify high-growth investment opportunities.”

Two of the private equity-backed firm that emerged from the said region are Dino Polska, a Polish food store chain, which expanded to 630 stores prior to the Initial Public Offering of the company last year, and Avast software, a  Czech cybersecurity firm, which listed in May. Stock Exchange. Last March, UiPath, the robotic process automation vendor of Romania was valued at more than USD1 billion. It was more than ten-fold the valuation of the company when it last raised funding in April last year.

Manz continued: “Record levels of private equity and venture capital investment into companies across Central and Eastern Europe are helping to create regional and global success stories.”

The figures reveal that three-quarters of the record investment were in the sector of consumer goods and services while technology followed at 11 percent.

Polish businesses took 71 percent of the total capital. It was followed by companies in Romania, Hungary and Latvia respectively. Amonf the 12 EU members that forecast a growth in their GDP by 3 per cent or more this year, nine are Central and Eastern European countries.