PAEF transfers a further $2m to the Polish–American Freedom Foundation

With this grant, PAEF – managed by Enterprise Investors – has confirmed its commitment to supporting the Foundation in its mission to promote democratic and free market developments in Poland and the region.

The Polish–American Enterprise Fund established the Polish-American Freedom Foundation in 2000. This followed PAEF’s successful completion of its own mission to stimulate Poland’s private sector, as a result of which it could liquidate its assets. PAEF returned $120 million of its initial capital to the US Treasury, and gradually transferred the remaining funds to PAFF’s endowment. To date, PAEF has contributed a total of $213 million to the Foundation.

The Polish–American Enterprise Fund was established in 1990, following adoption by the US Congress of the SEED (Support to Eastern Europe’s Democracy) Act in 1989, with the objective to support the development of a market economy in Poland through loan programs, capital projects and training assistance. The United States transferred $262 million to PAEF. In the 1990s, the Polish–American Enterprise Fund was among the largest investors in Poland and contributed to the success of tens of thousands of Polish private companies. Thanks to professional management by EI and good cooperation with local entrepreneurs, PAEF increased its assets to over $350 million.

Since its inception in 2000, the mission of the Polish–American Freedom Foundation has been to reinforce civil society, democracy and the market economy in Poland and, in particular, to equalize opportunities for individuals in their social development, and to share the Polish transformation experiences with other countries of Central and Eastern Europe. To date, the Foundation has disbursed nearly $29 million toward 24 programs.

Enterprise Investors manages the largest group of private equity funds in the CEE region, including PAEF. In total, these funds have invested almost $1 billion in 100 companies in Poland, and have exited more than 80 investments, including all major PAEF investments, at very attractive rates of return. Many of PAEF’s portfolio companies were successfully restructured and floated on the Warsaw Stock Exchange.