GED sets up Spanish fund to invest in South-East Europe

19 April 2005

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GED Venture Capital Group has set up the first Spanish fund to invest in Southeastern Europe. The fund has recently been registered with the CNMV (National Stock Market Commission). More than E50m has already been contributed by a variety of investors including GED, Caja Madrid, Axis-ICO, Bank of Austria, Litexco MediterrÃ¡neo, Kutxa, Caja Laboral, Mapfre, El Corte InglÃ©s, Sa Nostra, RGA fondo de pensiones, IDI and Banco Privado PortuguÃ©s.The fund plans to invest in Romania, Bulgaria and other neighbouring countries, and has a target of E100m. With this fund, GED will be managing a total volume of investments of more than E200m, shared out between three funds: GED Eastern Fund II, GED Eastern Fund I-RPPF and GED Iberian Fund I.GED already has experience investing in Romania, where it set up the E50m GED Eastern Fund I-RPPF in 1996. This experience allowed the group to build a local management team of 10 people and analyse over 550 operations. The first fund has already invested in 12 companies from different sectors such as gas distribution, telecommunications, domestic appliances, pharmaceutical products, textiles, hotels and industry parks, and it is hoped that gross IRR in dollars will be between 20-25%. Eight projects have already been divested and the fund will accumulate gross annual returns on investment of more than 20%.