23 Aug 2018
Private equity and venture capital investment into companies in Central and Eastern Europe (CEE) reached a record €3.5 billion in 2017, new data from Invest Europe reveals.
A 113% year-on-year increase, this amount surpasses the region’s previous peak in 2008 by 40%, according to the industry association’s Central and Eastern Europe Private Equity Statistics 2017 report, which also shows strong results across fundraising and exits. CEE’s consumer goods and services sector attracted the majority of investment capital with three-quarters of the total, while technology (ICT) followed with 11%. Polish companies were the big draw, receiving 71% of the total amount, followed by those in Romania, Hungary and Latvia respectively.
“Record levels of private equity and venture capital investment into companies across Central and Eastern Europe are helping to create regional and global success stories,” said Robert Manz, Chair of Invest Europe’s Central and Eastern Europe Task Force and Managing Partner at CEE private equity firm Enterprise Investors. “International investors are drawn to the region’s attractive economic growth, strong consumer spending and private equity fund managers with proven ability to identify high-growth investment opportunities.”
Examples of the region’s recent private equity-backed business successes include Avast Software, the Czech cyber security company which earlier this year listed on the London Stock Exchange in London’s biggest ever tech IPO. Polish grocery store chain Dino Polska grew rapidly to nearly 630 stores before its IPO last year on the Warsaw Stock Exchange. In March, Romania’s robotic process automation vendor UiPath was valued at over US$1 billion, more than ten-fold the company’s valuation when it last raised funding in April of last year.
Romania was the EU’s fastest growing economy last year with an estimated GDP growth rate of 6.4%, according to the European Commission. Poland, the Czech Republic and Hungary economies are also growing at a faster rate than major Western European countries. Of the 12 EU members forecast to grow GDP by 3% or more in 2018, nine are Central and Eastern European countries.
Private equity fundraising in the market increased 46% year-on-year to reach €1.3 billion in 2017, including a record €360 million for venture capital fundraising. European investors from outside Central and Eastern Europe provided 38% of the total capital raised, while global sources of capital outside of Europe contributed 26%, driven by US-based investors. Funds-of-funds were the leading source of capital at 31% of the total, followed by government agencies at 26%.
Company exits in CEE reached a total value of €1.3 billion, measured at historical investment cost, a year-on-year increase of 16% and the region’s third highest annual divestment level. Secondary buyouts were the most utilised exit route with 38% of the total value, followed by trade sales at 29%.
The high level of private equity fundraising, investments and exits in Central and Eastern Europe last year is just part of the success story for the entire European market. Across the continent, total investment into European companies hit a ten-year high at €71.7 billion, a 29% year-on-year increase. Almost 7,000 companies received investment, of which 87% were small and medium-sized enterprises (SMEs).
Invest Europe is the non-profit association representing European private equity, venture capital and their global investors. Its research is the most robust and authoritative in the industry. The Central and Eastern European Private Equity Statistics 2017 report is free to download from the association’s website, investeurope.eu.
Media enquiries For more information please contact
Elena Díaz Ureta
Communications Manager – Media & External Relations
Most PCs automatically accept them but you can change your browser settings to restrict, block or delete cookies if you want. Each browser is different, so check the 'Help' menu of your particular browser (or your mobile phone's handset manual) to learn how to change your cookie preferences. Many browsers have universal privacy settings for you to choose from.
Cookie settings in most versions of Internet Explorer can be found by clicking the tools option and then the privacy tab.
Cookie settings in Firefox are managed in the Options window's Privacy panel. See Options window - Privacy Panel for information on these settings.
Click on the spanner icon on the toolbar, select settings, click the under the bonnet tab, click on content settings in the privacy section.
You can manage cookies in Opera if you Click on settings, then Preferences, then Advanced and finally Cookies
Choose Safari, then preferences and then click security. You should then be able to specify if and when Safari should accept cookies.
To manage cookies on your mobile phone please consult your manual or handbook.
If you decline cookies, some aspects of Invest Europe site may not work on your computer or mobile phone and you may not be able to access areas you want on the website. For this reason we recommend that you accept cookies.
If you delete all your cookies you will have to update your preferences with us again and some aspects of our site may not work.
If you use a different device, computer profile or browser you will have to tell us your preferences again.
If you'd like to learn more about cookies in general and how to manage them, visit aboutcookies.org.
We can't be responsible for the content of external websites.Opt-out of cookies