The EBRD is investing up to €27 million into a specialised private equity fund, Avallon MBO Fund II, which is focused on investing in small and medium-sized management buyouts and management buy-ins predominantly in Poland but also in certain other countries of central and south-eastern Europe.
The EBRD is a cornerstone investor in the fund which aims to reach €107 million and which will continue the successful strategy of Avallon MBO Fund I. The EBRD invested €12 million in 2007 in Avallon MBO Fund I. By investing in Avallon’s second fund, the EBRD will continue with its support to the development of a sustainable private equity asset class in the region acting as a catalyst to mobilise private institutional quality investors.
“Private equity fundraising is currently very challenging globally, and particularly so in CEE,” said EBRD’s Director for Equity Funds, Anne Fossemalle. “The EBRD investment into a private equity fund will help the Bank reach out to SMEs and support the generational transition that is currently underway in the region, fostering ownership among company management.”
“Our investment philosophy is based on partner relationships with management teams, company founders and an excellent network of industry experts,” said Tomasz Stamirowski, Managing Partner of Avallon. “The current economic environment creates good opportunities. We are very pleased that such a professional and reputable institution as the EBRD is continuing to invest in our funds and share our idea to promote entrepreneurial spirit among managers.”
Avallon was established in 2001 and was a market pioneer in management buy-out transactions in Poland. Since then the company has grown to become a strong market player and organises leading conferences and roundtables on managing buy-outs in the region. Avallon continues to operate from Lodz, Poland.
Since the beginning of its operations in Poland, the EBRD has invested over €6 billion in over 311 projects in the country. The Bank sees further development of the Polish private equity market as one of its current priorities.