EBRD invests €15 million in Genesis Capital’s private equity fund for Central Europe

By Svitlana  Pyrkalo
@pyrkalo

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  • EBRD invests 15 million in Genesis Private Equity Fund IV
  • The 150 million fund will invest in SMEs, mainly in the Czech and Slovak Republics
  • Other limited partners in the fund are the EIF and private investors

The EBRD has invested in a new fund managed by Genesis Capital, a leading private equity manager based in the Czech Republic, for investments in central European SMEs.

Genesis Capital has set up its new fund, Genesis Private Equity Fund IV, to invest in 10-12 SMEs or mid-cap companies in the Czech Republic, the Slovak Republic and selectively in other countries in Central Europe. 

In line with Genesis Capital’s prior experience, the new fund will focus on companies that typically face generation changes, show potential to grow via add-on acquisitions, or are part of local spin-offs of multinational corporations. This investment is expected to support the economic recovery, contribute to further improving access of SMEs and mid-cap companies to equity finance and enhance the competitiveness of local economies.

Private equity investment in the Czech Republic and the Slovak Republic is still under-developed, with most SMEs accessing external financing by borrowing money from banks.

Anne Fossemalle, Director, Equity Funds at the EBRD said: “We are excited to support SMEs and mid-cap companies in the Czech Republic in partnership with Genesis Capital, with whom we have a long-standing relationship. The investment strikes right at the heart of the EBRD’s strategy for re-engaging in the Czech Republic in line with the strategic priority to support economic recovery from the Covid-19 crisis, by providing equity support for Czech companies and supporting development of alternative funding sources.”

The EBRD resumed investment in the Czech Republic after the Bank’s Board of Directors approved a request by the Czech government to help with recovery from the coronavirus pandemic in 2021. The re-engagement is temporary, and will be limited in scope and focus on the private sector. Supporting local SMEs to access finance through the development of local capital markets is a key priority area of that re-engagement.

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