Advent International to raise another 300m euros

U.S.-based group Advent is about to launch its third consecutive investment fund for Central and Eastern Europe, estimated to be worth 300-350 million euros.

Although Advent officials would not comment on the above-mentioned information because of the restrictions imposed by regulators, the European Bank for Reconstruction and Development has disclosed plans to earmark up to 50 million euros for a 300-350m-euro investment fund, the successor of Advent Central&Eastern Europe II, which was set up in 1998. In Romania, Advent Central&Eastern Europe II holds the main stakes in Euromedia (outdoor advertising), Terapia Cluj (drugmaker) and is one of the main minority shareholders of mobile telephony operator MobiFon.

The value of the EBRD investment will be up to the fund’s initial capital. According to EBRD, the fund aims to raise 300 million euros, but no more than 350 million euros. The EBRD Board will tackle the project on May 25. Beside the money coming from the European bank, the fund is also expecting investments from European and American institutional investors, as well as from other international financial institutions.

The new fund is likely to go by the same private equity strategy its two predecessors applied: identifying companies with market leaders potential, developing and restructuring them and then selling them to a strategic investor.

The fund will be managed by U.S. company Advent International Corporation.
laurentiu.ispir@zf.ro