ARX Private Equity Partners, formerly known as DBG Eastern Europe, has completed the second close of its third fund, ARX III on €102m.
The firm began fundraising in early 2008 and held an €83 million first close in October. The company says it is on target for its €125m end goal.
ARX III focuses on succession driven buyouts in the Central and Eastern European lower mid-market and its investors comprise of blue-chip financial institutions. Its typical equity investments in the fund range from €3-15m per transaction, with deal enterprise values ranging between €10-50m.
DBG Eastern Europe rebranded as ARX in 2008 and ARX III is the successor fund to DBG Eastern Europe II which closed on €67m in 2003. DBG I raised €46m and closed in 1997. Both DBG funds were sponsored by German mid-market private equity firm Deutsche Beteiligungs which sponsored the firm from inception until early 2008.
Jacek Korpala, Co-Managing Partner, Arx Equity said: “We perceive the current investment environment in CEE as particularly attractive for established investors who really understand the local market. Acquisition finance is still available in certain CEE countries, for lower mid-market deals, and while there are few alternative sources of exit liquidity, there are also a large number of business owners who have over-extended into non-core ventures.”