Private equity: Mid Europa scores private equity hat-trick
Mid Europa Partners, the leading independent private equity firm focused on central and eastern Europe, has established a notable benchmark for the industry in the region, raising €1.5 billion in commitments for its latest fund, Mid Europa Fund III.
The largest buyout-focused fund in the region to date attracted contributions from more than 60 investors, both existing and new, including Axa Private Equity, Caisse des Dépôts et Consignations, Citi, European Investment Bank, Government Investment Corporation of Singapore, Goldman Sachs Asset Management and Unigestion. About 28% of commitments came from pension plans; 24% from funds of funds; 19% from banks, insurance companies and other financial institutions; 16% from government-related entities and international financial institutions; and 13% from endowment funds and foundations. European and North American investors accounted for 50% and 36% of total commitments, respectively, with the 14% balance coming from the Asia-Pacific and Middle East regions. Mid Europa committed €30 million of partner capital before launching the fund to investors in May and made an initial close at €1 billion in September. Thierry Baudon, Mid Europa’s managing partner, says: "We are delighted with the quality and diversity of the investors who committed to our third fund. With our second fund already 80% invested in less than 24 months, this new investment vehicle will allow us to continue to take advantage of the rapidly expanding flow of quality buyout opportunities in central and eastern Europe." Mid Europa’s second fund was closed at €650 million in January 2006, following the initial $550 million fund raised in June 2000.