Mid Europa seeking funds, placement agent

Kimberly Romaine
16 May 2011

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The fundraising trail is heating up across Europe, with CEE no exception.

As unquote" reported in April, Mid Europa is gearing up for its fourth fundraise. Mid Europa has a recent hat-trick of exits behind it, which should put it in good stead to tap up its 60+ investor base for another €1.5bn.

It will be in a busy space: Enterprise Investors' and Abris' PPM should be hitting desks around now, while 3TS is on its way to its €160m target. Accession Mezzanine Capital and Syntaxis are both seeking funds for mezzanine in CEE. In Turkey, Mediterra Capital has just raised $144m in a first close for its debut vehicle, while 21 Partners is said to be launching a vehicle for the region. Dedicated CEE fund of funds Alpha is gearing up to raise its next vehicle, with a €300m target. (Separately, Alpha is in a dispute with an activist shareholder regarding its listed holdings).

Having partnered with placement agent MVision for its spin-out and debut independent vehicle, it is now unclear whether the courtship will continue. Mid Europa is believed to be in discussions with UBS and newcomer Asante.

Its vast LP base – which went from 20-something for its Fund II to 60-something for its Fund III – should make the raise an achievable one. In 2006 Mid Europa smashed its €500m target to close on €650m, with commitments from Alpinvest, ABN-Amro, GIC, former parent AIG Global Investment Group, AXA, MetLife, MN Services, EBRD, EIF, IFC and Citigroup. But it wasn't enough; less than two years later Mid Europa announced €1.5bn for its Fund III. Many new LPs came on board, and included AGF Private Equity, ATP Private Equity Partners, AP2, Auda Private Equity, Caisse des Depots et Consignations, CAM Private Equity, Feri, Goldman Sachs Asset Management, HarbourVest, MetLife, OP Trust, Pantheon, TIAA, and Unigestion.

Mid Europa's latest deal was the buyout of freight business Waberers in March. Just before that, it bought Polish grocery store business Zabka in a secondary buyout from Penta. Last October it bought healthcare business Med-Sport.

Mid Europa did not return our requests for a comment. MVision declined to comment.