Mid Europa holds €800m final close for Fund IV

The vehicle has a €650m pre-allocated co-investment programme, allowing its 25 LPs to invest directly alongside the fund.

Mid Europa spent nearly a year and a half on the road. The latest fund is significantly smaller than the GP's previous fund, which hit its target of €1.5bn. Raised in 2007, Fund III was the largest fund targeting central and eastern Europe ever raised. It launched in May 2007 and closed six months later, with more than 60 LPs committing to the fund.

Thierry Baudon, founder and managing partner at Mid Europa, told unquote" that while the fund's initial target stood at €1bn, the GP revised the hard-cap to €850m at the request of its LPs. Baudon said this was a result of the low dealflow, despite the region having recovered from the financial crisis. He added that the co-investment programme will allow Mid Europa to react according to demand.

Though Fund IV is unlikely to target investments in Ukraine, the GP denies that the conflict in Ukraine has influenced fundraising or the strategy, pointing out that its portfolio has always been more focused on the west of the region.

Investors
LPs include a Chinese state-backed fund and a Singaporean sovereign wealth fund, which have pledged about a quarter of the commitments to Fund IV.

Around 70% of commitments to the new fund came from existing investors.

Investments
The fund will target businesses in central and eastern Europe, focusing on high-growth sectors that benefit from consumer trends as well as buy-and-build, consolidation and regional expansion opportunities.

Baudon said Fund IV will focus on service sectors that cater to the urban middle class, including private healthcare, retail, consumer, digital media, and tourism and leisure.

The GP will aim to invest in companies with enterprise values of up to €500m, with an average equity ticket of €75-250m.

People
Thierry Baudon is a founder and managing partner at Mid Europa Partners.

Advisers
Equity – Ogier, William Simpson, Bryon Rees (Legal); Kirkland, Richard Watkins, Ian Taplin, Kevin Treesh, Lisa Cawley, Laura Bader (Legal).

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• Topics
• CEE
• Buyout
• Mid Europa Partners