Central & East European Private Equity Fund

Central Europe Trust (CET) has co-managed eight private equity funds focused on Central & Eastern Europe (CEE) in partnership with the European Commission (Phare Programme), European Bank for Reconstruction and Development (EBRD), PPF (wealthiest man in Central Europe Petr Kellner), AIG (now PineBridge), Framlington (AXA), Charterhouse, CCF (HSBC/Cerberus), Bank Zachodni (AIB/Santander/Erste), Jupiter Asset Mgmt, and Commerzbank that had 80+ investments across many sectors including real estate of $825m+ and generated a 30% IRR and 3.5x ROIC (see below). Our joint venture (JV) partners contributed capital, led the fundraising, set the investment strategy, provided governance/oversight, and held financial/administrative control while CET led the sourcing, diligence, execution, management, and exiting of each deal.

CET seeks one or more JV partner to establish a new fund or investment program targeting CEE. Our new JV partner could be an institution, asset/fund manager, bank, sovereign wealth fund, private equity/venture capital firm, or HNWI/family office. CET could assist in approaching potential fund investors, such as bilateral/multilateral institutions as well as public- and private-sector LP investors in CEE, Europe, the Gulf, and North America.

One strategy could be to invest in CEE firms having technology/innovations, know-how or business models appropriate for introduction into the geography of our new JV partner(s). CET has access to large numbers of start-ups, small/midsize enterprises, and mature firms in CEE appropriate for organic and/or acquisitive international expansion but that would require support in the geography targeted for expansion.

The middle-market in CEE is particularly attractive as there is a large supply of firms that were started or privatized after the political changes of 1989 and face succession issues as founders / owners / managers retire while there is relatively little demand as few funds focus on this investment range of $10m (below which there many local early-stage investors) and $50m (above which pan-European/global private equity funds are active).

E: david.keresztes@cet.co.uk 

M: +36 70 162 7575 (WhatsApp/Viber/WeChat)

Summary of CET's eight joint venture funds/investment programs that held 80+ investments of $825m+ that generated a 30% IRR and 3.5x ROIC:

$50/10m Rural Group: Co-investment JV with largest investor in CEE PPF (€40b AUM, billionaire Petr Kellner) that acquired $10m of agricultural land in small plots, consolidated into larger tracts, exited to HNWIs/brokerage

$320m AIG-CET Capital: 12 deals/exits: UBB (banking)/National Bank of Greece, Empik (fashion/retail)/IPO, Luxten (lighting)/mgmt, TriGranit (real estate)/Nathaniel Rothschild & Sandor Csanyi, Dialog (mobile)/Orange, Astral (broadband)/UPC (Liberty Global), Netia (telecom)/IPO, Zabka (convenience retail)/Penta, Globtel (mobile)/Orange, Ultimo (debt collection)/Advent Intl, Waberer’s (road logistics)/Mid Europa, Jet (consumer finance)/BNP-Paribas

€44m Romanian Post-Privatisation Fund: Sponsored by EC/EBRD, managed by GED, CET mandated on exits. 12 deals/exits: Continental (hotels)/mgmt, ISAF (network automation)/IPO, Regisco (financial)/Bucharest Stock Exchange, Adesgo (fashion)/BB de Smeth, IRIDE (real estate)/Immofinanz, Prestar (teleco)/Telesystem, PC Net (IT), Remayer (recycling)/Ecore, Sicomed (pharma)/Zentiva, Arctic (white goods)/Koç Group, Advantage (software)/mgmt, Regev & Instal/VitalGaz (gas/water)/Engie (Gaz de France Suez)

$30m West Siberia Regional Venture Fund: Sponsored by EBRD, managed by Framlington (AXA later acquired). CET had structured mandate from EBRD to assist on sourcing, screening, diligencing, executing deals

ECU 43m Slovak Post-Privatisation Fund: Sponsored by EC (Phare)/EBRD; managed by 50/50 JV Framlington-CET; Framlington provided oversight; CET did deals in CEE, including ECU 1.5m in Slovak dairy; exit to Bongrain

$80m East European Food Fund: Sponsored by Jupiter Asset Mgmt/Commerzbank/EBRD. CET advised Jupiter on fundraising, investment/exits of Ciuc/Grivita/Haber/Brau Union/Heinekin, Csopak /Agrofert (Czech Prime Minister Andrej Babis), Royal Tokaji (wine) / Euroventures & Damon de Laszlo

$110m Polish National Investment Fund 14: International Westfund Holdings (JV of Bank Zachodni 34%, CET 33%, Charterhouse 22%, CCF 11%) 34 portfolio companies/21 exits; among top-performing NIFs by profitability, NAV and valuation.

$4.4m CET/Charterhouse: 4 growth buyouts, 1 tech venture capital deal: Mildes (dairy)/Danone, Infoline (telecom)/Deutsche Telekom, Avanti (salt)/liquidation, Patoka (building materials)/CRH, Toska (dairy)/Savencia