Poland – private equity leader in the CEE region
Private equity investment into Central and Eastern European companies is at its highest amount since 2009. The total investment amount increased 25% year-on-year to €1.6 billion, with the number of companies backed matching the record level seen in 2014. The main destinations of private equity financing in the CEE region in 2015 was Poland with 54% of total value.
The figures are taken from Invest Europe’s Central and Eastern European Private Equity Statistics 2015 report. The document proves that the companies from the CEE region continue to develop dynamic businesses and compete with the international rivals.
According to the report, Poland was the most attractive investment target in Central and Eastern Europe in 2015 (54% of total value). The other leaders of private equity financing in the CEE region in 2015 were Serbia (14% of total), Hungary (10% of total) and Romania (9% of total). These four countries made up 87% of total CEE investments by value in 2015. Poland was also the most active country in terms of exits in 2015, accounting for 65% of divestments by value at historical cost and 46% of divestments by number of companies.
“The development of such strong private equity industry in Poland is no coincidence. Our private sector is constantly developing and Polish economy is still quite stabilized in spite of some turbulences. A strong foundation for the Polish private equity sector has also been provided by the continuous improvements to the local institutional infrastructure. We have also a lot of innovative start-ups and companies employing a well-educated and competitive workforce. That is why Poland is the main investment target in the region” – says Krzysztof Kulig, Managing Partner at Innova Capital. – “Benefits of cooperation between PE funds and companies are mutual. The private equity industry provides Polish companies with the experience and the highest quality management standards from various markets, which enables the companies’ dynamic growth and successful restructuring of others” – states Kulig.
By number of companies financed, Poland, Hungary, the three Baltic states and Slovakia made up 91% of the total companies receiving private equity financing in 2015.
By country, the most active venture market in CEE in 2015 continued to be Hungary, attracting €25 million or 30% of the year’s venture investments by value, whereas Poland attracted €20 million or 23% of the total