Baring Private Equity Partners, the investment arm of Dutch group ING, is planning to set up a new investment fund for Central and Eastern Europe, including Romania, which would be twice or three times bigger than the existent fund, Baring Central European Fund (BCEF).
BCEF holds stakes in Romanian-based companies such as Topway Industries (edible oil producer) and Infopress (printing house). The fund, launched in 2000, controls 86 million euros in initial equity.
The marketing campaign for the new fund is to begin soon, with the underwriting to take place early next year. Thus, the money to be invested could be available in 2004.
The Dutch company officials say the initiative of raising a new fund was due to the high potential still reported in the Central and Eastern European countries, especially in manufacturing.
“Central Europe is a very good area for investing in medium-sized companies operating in the traditional industry fields,” Gyuri Karady, managing partner at Baring Private Equity Partners (BPEP), told the Wall Street Journal. However, the Dutch officials mentioned the new fund would not aim only at manufacturing, as the service sector will also benefit from the projected increase in consumer spending.
The new fund will set a minimal investment limit of some 10-25 million euros for each deal, up from the 5-15 million euros of the current fund.
BCEF is currently controlling stakes in seven companies in Poland, Hungary, Romania and Bulgaria. The fund’s first exit took place last year, in Romania, when BCEF sold the Topway margarine unit to the Norwegian group Orkla.
The fund will seek another two or three investment opportunities by 2005, also launching the procedures for selling the companies in the present portfolio.
laurentiu.ispir@zf.ro