Avallon raises €109m for MBO II fund

The fund, which was launched in December 2012, just passed its target of €107m. Its hard-cap was set at €120m.

Avallon MBO II hit its first close in January 2013 after securing a cornerstone investment from the European Bank of Reconstruction and Development (EBRD), according to unquote" data.

The fund's predecessor, Avallon MBO I, raised €50m in 2007.

Investors
According to unquote" data, EBRD committed €27m to the vehicle. EBRD was also an investor in Avallon MBO I, to the tune of €12m.

Aside from EBRD, the European Investment Fund (EIF) and Swiss funds-of-funds manager Akina Partners committed to Avallon MBO II, with EIF investing a total of €15m. Bank Gospodarstwa Krajowego also contributed via its Polish growth fund following the first closing of the vehicle.

The fund also includes a GP contribution of more than €4m.

Investments
Avallon MBO II will partner with management teams to back buyouts of small- to mid-cap companies, specifically buying stakes in private companies currently owned by their founders.

The fund will back companies generating turnover of PLN 50-250m (€12-60m) and will invest on average around PLN 30-40m. Sectors that the fund will consider investing in include manufacturing and fast-moving consumer goods.

Avallon MBO II has already carried out two transactions. In March last year, the fund supported the MBO of personal and healthcare product manufacturer Kimberly-Clark's Polish subsidiary.

The vehicle has also backed Marketplanet, the corporate purchases division of Telekomunikacja Polska (which was renamed Orange Polska in 2012).

People
Tomasz Stamirowski is a managing partner at Avallon. Michał Zawisza and Robert Więcławski are both partners at the firm.

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• CEE
• Buyout
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