Polish Enterprise Fund IV (PEF IV), a private equity fund managed by Enterprise Investors (EI), has realized its investment in LPP, a leading fashion retailer in Central and Eastern Europe (CEE.) PEF IV sold its entire stake to Polish and international investors in a series of block transactions on the Warsaw Stock Exchange. The PLN196 m ($61m) transaction yielded a 4.5x investment multiple for the fund and an IRR of 90%.
Polish Enterprise Fund IV acquired a 13% stake in LPP via an equity increase and by purchasing shares from a shareholder in May 2003. During the last two years LPP’s sales and net profit almost doubled and are expected to reach PLN750m ($237m) and PLN60m ($19m), respectively, in 2005.