CEE remains attractive for private equity firms

The number of companies set up in Central and Eastern Europe, which received private-equity backing in 2012, increased for the third year in a row, a by the European Private Equity and Venture Capital Association (EVCA) published July 24 states.

“Many CEE countries have been part of the European Union for many years and carry a similarly low risk profile to the major European markets,” EVCA Secretary-General Dörte Höppner said, quoted in the report. “CEE combines that stability with the growth fundamentals of an emerging market – and that’s a compelling combination for investors.”

As many as 220 companies received PE backing in 2012, up 13% y/y, according to statistics compiled in the report. This was driven by a higher number of companies receiving venture capital financing.

Despite the relatively low interest of PE firms in the CEE region, which maintained at 2.8% of the total investment value in Europe, exits of completed investments in 2012 reached EUR 1.1 bln, which was the second highest level ever recorded in the area.