Enterprise Investors’ venture fund finances expansion of Smartree Romania

Smartree Romania SRL provides high-quality HR outsourcing services such as payroll calculation and personnel administration to more than 100 renowned multinational and local companies operating in Romania. The company services more than
30,000 employees each month, using state-of-the-art software that it developed internally. Since its inception in 2000, Smartree has proved successful at winning and retaining new customers, mainly thanks to the excellent quality of service, competitive price and a level of IT security that is unmatched by any in-house HR department. Smartree Romania is owned by Eric Kish,
a successful entrepreneur and manager. Revenues have been growing at double digit rates over the last few years,
and in 2009 sales reached approximately €3.5 million. Management plans to continue this fast growth in the future.

“The Romanian HR outsourcing market is expected to grow fast within the next few years from its current very early stage of development. We believe that more Romanian companies will externalize their HR needs in search for better, faster
and lower-priced services. With the help of our investment, Smartree will be able to maintain its leading position by expanding its offer and winning new customers,” said Rafal Bator, Enterprise Investors partner who leads the venture capital team.

“The funds that Smartree received from our new venture partner will finance a new line of business – personnel outsourcing –
as well as the further growth of payroll and software outsourcing. We plan to expand our business significantly within the next five years by consistently growing our customer base and providing a broader scale of services to existing clients,” said
Mr. Eric Kish, owner of Smartree.

“We are happy that after the six investments made by Enterprise Investors in Romania so far, our venture fund makes its first investment in this country. Enterprise Venture Fund I will continue to look for companies that have a proven and successful business model and generate revenues and profits, at least at the operating profit level. We raised the fund to meet the huge demand among smaller companies for private equity and venture capital financing in CEE. We have been in contact with several Romanian companies seeking expansion capital, and we invite more companies in the country to contact us,” commented Cristian Nacu, Enterprise Investors partner and head of the Romanian office.