Avallon holds €80.6m first closing for third fund

Taking into account the credit support, the fund currently has financial resources of PLN 700m (approximately €163m) at its disposal for new investments, the GP confirmed.

Launched in June 2019, the fund is dedicated to MBO investment opportunities in Poland-based SMEs to support their long-term capital growth.

The vehicle is 34% larger at first close than its predecessor was; Avallon MBO Fund II held a first close on €60m, settling at final close on €109m in January 2014. Avallon is also in talks for an exit from part of its first and second funds, and wants to conduct three or four transactions this year, Mergermarket reported.

During the process of founding, two people were promoted to the position of partners. The team's expansion is also planned, the GP said.

Alongside the fund close, Avallon has completed the acquisition of a 60% stake in household cleaning products manufacturer Clovin; the deal was announced in November 2019. 

Investors
MBO Fund III received backing from a diverse group of institutional investors, including European Bank for Reconstruction & Development, according to Unquote Data. In addition, Avallon injected PLN 21m into the new fund.

Investments
The fund invests mainly in companies with a turnover in the PLN 60-250m range that operate in technology, fast-moving consumer goods (FMCG), manufacturing and healthcare. The vehicle will invest equity and quasi-equity tickets in the €15-20m range. Due to a range of co-investment agreements with fund investors and financial partners, the fund also plans to carry out larger transactions.

People
Avallon – Tomasz Stamirowski (managing partner).

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