The quiet power behind Central and Eastern Europe’s private equity revival

Performance, growth, and transparency define a maturing investment landscape

In a world increasingly shaped by the pursuit of long-term resilience, sustainability, and innovation, private equity stands as a quiet force driving transformation. At the European Bank for Reconstruction and Development (EBRD), we see this “quiet power” not only as a metaphor but as a mission, one we have championed for over three decades across emerging Europe.

As a Limited Partner (LP), EBRD has played a foundational role in building a mature, dynamic private equity ecosystem that offers global investors access to high potential companies in markets often overlooked. Our commitment is rooted in trust, transparency, and impact, principles that resonate with institutional investors across North America, Asia, and the Middle East.

EBRD’s equity funds program has supported over 290 funds, committing more than €7 billion to funds with aggregate capital exceeding €34 billion, spanning diverse private equity strategies and regions. This scale and longevity reflect our deep conviction in the asset class and our ability to navigate the complexities of frontier and transition markets. Our rigorous due diligence, governance standards, and active engagement with fund managers serve as a stamp of quality, catalysing capital into regions where private equity penetration remains low. We remain committed to the region and confident in its ability to deliver both returns and impact.

The recent performance continues to build strong momentum and reinforce investor confidence. According to Invest Europe’s 2024 CEE Private Equity Statistics, exit activity surged in 2024, delivering the strongest results in years and proving that the region can generate liquidity even amid global uncertainty. Divestments reached an impressive €1.35 billion at investment cost, well above the five-year average and highlighting a clear upward trend despite broader market headwinds.

For global investors, this is a compelling moment to tap into a market that’s still in its early growth phase, where valuations remain attractive, and competition is relatively low compared to Western Europe. As private equity penetration deepens and local ecosystems evolve, those who step in now have the chance to shape the next wave of expansion and unlock significant long-term value.

Comprehensive reporting and institutional discipline

Emerging Europe’s private equity ecosystem is increasingly defined by transparency, standardized reporting, and disciplined governance, qualities that global LPs value. Through rigorous due diligence, promoting best governance practices, and supporting fund managers with tailored mandates, EBRD has helped instil a culture of institutional discipline and transparency.

Our participation often serves as a quality signal, attracting other institutional investors and catalysing capital flows into markets that remain underrepresented in global portfolios. Today, private equity and venture capital investment in the region still represent only about one-fifth of the European average as a share of GDP, underlining the significant scope for growth and convergence.

Quiet Power, loud impact

The “quiet power” of private equity is evident in the stories of transformation we help write, whether it’s a tech enabled SMEs in the region, a renewable energy platform in Poland, or a healthcare provider in Romania. These companies grow, innovate, and create jobs in markets where access to long-term capital remains limited but the potential for impact is vast.

At EBRD, we remain steadfast in our commitment to the region and confident in its ability to deliver both attractive risk adjusted returns and lasting impact. The momentum seen in 2024, with investments up 50% to €2.83 billion, underscores that Central and Eastern Europe is not only catching up but increasingly shaping Europe’s private equity landscape.

Anne Fossemalle
Head of Fund Investments, European Bank for Reconstruction and Development
Former Chair, Member of the Limited Partners Platform Council, Invest Europe