Enterprise Investors announces a robust first closing of Polish Enterprise Fund V

Polish Enterprise Fund V will be the largest private equity fund managed by Enterprise Investors and the largest fund raised thus far in Central and Eastern Europe. The robust first closing included leading pension funds, insurance companies and financial institutions from the USA and Western Europe.

“Polish Enterprise Fund V includes new investors to the region as well as investors with experience from our previous funds. Their decision to join us in PEF V confirms EI’s track record and Poland’s attractiveness for investors. Poland’s imminent access to the EU makes PEF V particularly promising. The first investments of Polish Enterprise Fund V will be made in the next few days,” said Jacek Siwicki, managing partner of Enterprise Investors.

Polish Enterprise Fund V will continue the group’s strategy of investing in companies with solid management, a strong market position and high growth potential. PEF V will make investments ranging from €3 million up to €45 million. The most attractive targeted sectors include financial services, consumer products, telecoms, retail, healthcare, manufacturing, and environment. The typical holding period of an investment is three to seven years. Transactions considered for PEF V will primarily be expansion and buyout capital. PEF V will be managed by the region’s largest and most experienced investment team, which has 14 years of experience and numbers 20 professionals.

Polish Enterprise Fund V will focus on Poland, although up to 30% of the fund’s capital may be invested in other countries of Central and Eastern Europe, including Romania, Slovakia, the Czech Republic, Hungary, Bulgaria, and the Baltic States.

Enterprise Investors has been active since 1990. Together with the capital of Polish Enterprise Fund V, funds under the company’s management will exceed $1 billion. As of January 2004, EI’s private equity funds invested $684 million in more than 92 companies across Poland, Romania, and Slovakia. The funds have fully exited 58 investments and returned $659 million to their investors.