The private equity investment in Central and Eastern Europe (CEE which excludes Russia, CIS and Turkey) rose to €1.6B ($1.9B) last year, the highest figure since 2009, while fundraising for investing in the region grew by 62% to €621M ($740M), according to the annual report by "Invest Europe" and French law firm Gide.
Despite this growth, private equity investments in the CEE region represented less than 0.1% of total assets under management of the global PE industry, which hit $4.3 trillion in 2016.
CEE private equity investment activity in 2016 was concentrated in a few countries. Poland remained the leading country with 45% of the region's total investment value and home to almost a quarter of the companies receiving funding. It was followed by the Czech Republic, Lithuania, Romania and Hungary.
Russia hosted four out of the five largest VC deals in the Central and Eastern European region, while Poland is home to the largest PE deals since 2012.
Therefore, alternative investment space remains largely unexplored in Eastern Europe, Central Asia and the Middle East regions. Given the geographic position, proximity to major powers and markets including China and EU, abundant natural resources, educated human capital and enormous needs for strategic and operational enhancement of all large and medium-size companies, the region has explosive potential for private equity investors. Tethys Investments believe that the region will become hotspot of private equity investments as all countries need to unleash the potential of the private sector and enhance efficiency of their economies. Volatility of commodity prices and the growing impact of the green energy revolution will intensify the competition for FDI among the countries in Eurasia.
Tethys Investments aspires to be the leading private equity firm connecting the region to the global investment markets. We plan to be the catalyst for the economic development of the region, which will enhance prosperity of people and deliver premium returns to investors.Go back to Analysis & Research