The European Bank for Reconstruction and Development (EBRD) is committing up to €25 million to the V4C Poland Plus Fund II, a new fund raised by V4C. The fund will invest in 8-12 lower-middle-market companies, predominantly in Poland and other countries in central and eastern Europe (CEE).
In line with V4C’s prior experience, the new fund will focus on service-oriented firms such as those focusing on software, healthcare and the digitalisation of business services. The fund will seek to back local founders with proven track records and will aim to create value by developing segment leaders, often through consolidation in fragmented markets. As part of the investment, V4C is also committing to sustainable finance, establishing the fund as an Article 8 financial product under the EU’s Sustainable Finance Disclosure Regulation. The fund’s strategy entails allocating a portion of investments to companies that have a positive impact on the natural environment and/or climate.
By backing a strong regional fund manager such as V4C, the EBRD is supporting the growth of the private equity ecosystem in Poland and the broader CEE region. This is crucial to making the region’s enterprises more competitive and innovative.
Anne Fossemalle, EBRD Director for Funds Investments, said: “We are excited to support lower-middle-market companies in Poland and across the wider CEE region in partnership with V4C, with whom we have a long-standing relationship. With their well-established presence and proven transactional and operational experience, as well as robust environmental, social and governance (ESG) processes, V4C remains a key partner for the Bank. We are proud that our fund investments improve people’s quality of life in the EBRD regions.”
Bill Watson, Managing Partner of V4C, said: “The EBRD is a strong partner for V4C and the entire private equity ecosystem in the region. Their continued support has allowed us to attract new investors to this fund and ensure that our investment capacity keeps up with the growth in the Polish, Romanian and other CEE markets.”
V4C is one of the few regional fund managers with a well-established presence on the ground and a strong track record in investment. To date, it has supported 13 companies in expanding and improving their governance, financial management and operations, including Shoper, a Polish provider of e-commerce software and services that were listed on the Warsaw stock exchange in July 2021.
