Central Europe gets €1bn for buyouts

Mid Europa Partners, the private equity firm focused on buyouts in Central Europe, has attracted capital commitments in excess of €1bn for the first close of its third fund, Mid Europa Fund III LP. Fund III was launched in May 2007. MVision Private Equity Advisers is acting as global placement agent. Mid Europa has voluntarily capped Fund III at €1.5bn of capital commitments, which the firm expects to reach in Q4 of 2007.

Mid Europa will continue to take majority stakes in leading Central European companies operating in sectors with high barriers to entry. The firm will typically invest between €50m to €200m in cash flow generative companies with enterprise values of up to €1bn. Mid Europa currently advises and manages funds with committed capital of approximately €2.1bn.

Thierry Baudon, Mid Europa managing partner, said: “We are very pleased to welcome back our existing investors and in addition a number of new investors, many of whom have selected Mid Europa for their first fund investment in Central Europe. The excellent response to our first round of fund raising for Fund III is a reflection of the results Mid Europa has shown to date. Investors recognise both the scale of the buyout opportunities in Central Europe and our ability as a market leader to realise them. The increased fund size will ensure that Mid Europa is well positioned to exploit the increasing deal flow available to it.”

Baudon, together with partner Craig Butcher, leads a team of 18 investment professionals that has worked together since 1999 operating from offices in London, Budapest and Warsaw.

The office structure is set up to optimise effectiveness in deal sourcing, structuring, due diligence and value creation in portfolio companies. The London-based team provides sector-based industrial expertise and access to strategic investors and global financial institutions, while the local presence strengthens origination, due diligence and monitoring capacity, as well as enhancing local credibility and visibility.

Collectively, the Mid Europa Partners team has experience executing deals in every major market of Central and Eastern Europe.