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Advent raises €1 Billion Central & Eastern Europe fund

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17 April 2008, London - Advent International, one of the world’s leading global buyout firms, has closed ACEE IV, its fourth fund for investment across Central & Eastern Europe, at 1 billion euros. Advent International raises and invests dedicated funds across the Central & Eastern European region, with local teams in four countries. These teams are supported by Advent’s other investment teams on four continents.

Advent has pioneered private equity across Central Europe, raising its first fund for the region in 1994. Since that date, it has financed 35 companies in Poland, the Czech and Slovak Republics, Hungary, Romania, Bulgaria and Turkey.

ACEE IV will invest in companies requiring 30 million to 100 million euros of equity to build market leadership and for cross-border expansion. As with previous ACEE funds, the team can also draw upon additional capital from the firm’s global funds for larger deals (the most recent of Advent’s global funds, GPE VI, raised 6.6 billion euros earlier this month).

In the last three years, Advent has backed eight companies in five CEE countries and has exited, or partially exited, seven investments including the Bulgaria Telecommunications Company, which was sold to AIG Capital Partners in a transaction valuing BTC at 1.66 billion euros; Terapia, a Romanian generic pharmaceuticals business sold to Ranbaxy Laboratories Limited for $324 million and Zone Vision, which was sold to chellomedia, the European content division of UnitedGlobalCom, Inc., in a transaction valuing the company at $80 million.

Commenting on the closing of the new fund, Advent Managing Partner, Joanna James says: “Central & Eastern Europe is now on the map for investors who are attracted by its combination of high growth and stability. This has served to raise the profile of the region, which is to the benefit of us all. Advent has invested three funds across Central Europe since 1994; there are many more businesses there that offer real potential for growth and cross border expansion. What we bring to these businesses is our long experience of the region alongside Advent’s global network in 15 countries.”

Chris Mruck, Managing Partner, added: “Many of our investments have broken new ground in the region, whether at the time of investment or of exit. Fourteen years on from our first deal here, the region remains diverse and fast-growing. Some markets here are now relatively mature, with buyouts the norm; others are still developing and offer great opportunities for pure growth.”

Four of the largest investors in ACEE IV, by committed capital, are GIC Special Investments, AlpInvest Partners, California State Teachers’ Retirement System and the EBRD*.

 

* It is not known whether the listed clients approve or disapprove of Advent International or the advisory services provided.

 

Contacts


Joanna James

Managing Partner & Co-Head of Central Europe, UK

T: +44 (0)20 7333 0800
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