Regional Roundup: Latest Private Equity Developments in Central and Eastern Europe
In a significant development for the European private equity landscape, two major funds have surpassed their initial targets, raising substantial capital to invest in growing businesses across the continent.
MidEuropa Private Equity Fund II, after surpassing its initial €250m target, raised €305m. This fund, which recently backed the leading Polish diagnostic service provider, Diagnostyka, is now the largest private equity vehicle in the Baltics. Since acquiring Diagnostyka in 2011, MidEuropa has fueled the company's growth through over 120 acquisitions, expanding its presence across Lithuania, Latvia, Estonia, Poland, Romania, and the broader EU.
In a similar vein, INVL Group completed the first closing of its second-generation private equity fund, INVL Private Equity Fund II, also raising €305m. This fund, now the largest private equity vehicle in the Baltics, aims to invest in companies with strong growth potential, targeting sectors such as healthcare, B2B services, consumer products and retail, and niche manufacturing.
Meanwhile, Morphosis Capital launched its second fund, Morphosis Capital Fund II, which surpassed its initial €250m target. This fund, double the size of its predecessor, aims to invest in SMEs across Romania and neighbouring regions, with a focus on sectors such as healthcare, B2B services, consumer products and retail, and niche manufacturing.
The success of these funds culminated in a significant public listing. Diagnostyka, the company backed by MidEuropa, made its stock market debut on 7 February 2025, priced at PLN105 (€25) per share. The IPO raised more than €400m in gross proceeds, reinforcing Diagnostyka's dominance in European healthcare and standing among the largest private equity-backed public exits in recent years. The IPO valuation of Diagnostyka exceeded €1bn, reflecting the company's strong growth and potential.
These developments underscore the continued interest and confidence in the European private equity market, with funds seeking to invest in businesses with promising growth prospects across various sectors. The success of these funds and their investments will likely have a significant impact on the European business landscape in the coming years.
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