Wider range of private equity funds will improve companies’ access to alternative funding sources in the region
By Nigina Mirbabaeva
The European Bank for Reconstruction and Development (EBRD) is investing €20 million(US$23.5million) in Spire Capital Partners Fund I, a private equity fund managed by Spire Capital Partners. The EBRD’s commitment has been key in helping the fund to reach its target size and establishing Spire Capital Partners as a new independent fund manager based in Poland.
The fund, which has €90 million under management, will make equity and quasi-equity investments in small and medium-sized enterprises (SMEs), with a focus on technology-enabled services, software and e-commerce – primarily in Poland and the rest of central and eastern Europe. It will support long-term capital growth by driving strategic, operational and digital transformation in its portfolio companies. The fund will typically invest between €5 and €20 million, acquiring majority or significant minority stakes in companies with established market positions, positive cash flows and strong growth potential.
The EBRD’s Head of Equity Funds, Anne Fossemalle said: “There is a missing layer of capital for companies that are profitable but require a professional investor to prepare them for the next stage of their evolution. Spire Capital will help to bridge this financing gap between early growth and mature buy-out investments and use its technological expertise to support the development of companies.”
The EBRD’s Regional Director for Poland and the Baltic States, Andreea Moraru said: “We’re proud to support the emergence of new fund managers such as Spire Capital. The EBRD’s commitment to funds is contributing to the development of the private equity ecosystem and providing companies with an alternative source of financing. This is crucial to make the region’s enterprises more competitive and innovative.”
A partner at Spire Capital, Arkadiusz Podziewski said: “Closing our first fund in today’s challenging geopolitical and macroeconomic environment is a strong signal that investors view our strategy as compelling. Our goal is to be an active, long-term partner for founders and management teams who have the potential to become leaders in their markets.”
While Poland has a well-developed private equity market, that market remains relatively shallow, with low levels of participation by domestic institutional investors and limited access to bank finance for SMEs. First-time fund managers, in particular, face significant challenges when it comes to attracting international capital amid global volatility in fundraising. The EBRD’s continued support for such fund managers is critical in order to maintain a diverse and dynamic private equity ecosystem.
The EBRD is one of the leading institutional investors in Poland. Since the start of its operations in the country in 1991, the Bank has invested more than €16 billion in Poland across 576 projects. Last year the EBRD invested a record €1.4 billion in Poland.
