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More cash flowing into CEE region

4th March 2013
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A new report shows that 2012 was a record year for fundraising in Central and Eastern Europe

Last year, a total of €3.7 billion was raised for mid-market private equity in the CEE region – up from €700 million the previous year, making it the best-performing European region for private equity, according to a survey carried out by Acanthus Advisers. 

Billions of private equity euros are flooding into the region
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In total, €13.2 billion was raised in the European mid-market by 48 funds last year, close to the 2011 figure of €14.7 billion but significantly below the 2007 peak value of €24 billion.


The equity market has been affected strongly by the drawn-out financial crisis, evidence of which is the fact that volumes raised in European private equity from 2009 to 2012 are only 40 percent of what was raised in the previous four years.

Fierce competition

The report also states that competition for capital from the world’s emerging markets remains strong, with many investors reducing the allocation for Europe in favor of increased allocation to Asia and other emerging regions.

Source: Acanthus Advisers
“Fundraising in Europe is likely to remain challenging as we progress into 2013, with the levels of cash returned to investors continuing to be low. Until more of this capital is returned to investors, many will remain over-exposed to the asset class and constrained in making new LP commitments,” Armando D’Amico, managing partner at Acanthus Advisers wrote in the report.

“The fundraising road looks set to be very crowded in certain regions over the next couple of years, as many firms that have delayed returning to the market will need to seek fresh capital for survival,” he added.

Remi Adekoya


From Warsaw Business Journal


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