admin-ajaxPrivate equity and venture capital investment in Central and Eastern Europe last year reached its highest amount since 2009, according to new data from Invest Europe. Among the main destination of private equity financing in the CEE region in 2015 was Romania, with 9 percent of the total financing.

The other main destinations of private equity were Poland (54 percent of total value), Serbia (14 percent of total) and Hungary (10 percent of total). These four countries made up 85 percent of total CEE investments by value in 2015. By number of companies financed, Poland, Hungary, the three Baltic countries and Slovakia made up 91 percent of the total companies receiving private equity financing in 2015.

It was another strong year for private equity exit activity in the region, with a record 97 companies exiting at a total value of  EUR 1.2 billion – measured at historical investment cost – the third highest year on record. Trade sale had the most important outflow, accounting for over half of the divestment value at historical cost. Public market exits made a strong showing, comprising 17 percent of total exit value at cost.

The total investment amount increased 25 percent year-on-year to  EUR 1.6 billion, compared with the number of companies from 2014.

“Last year’s increase in regional investment activity, at a new post-financial crisis high, points to a healthy and evolving market,” said Robert Manz, managing partner at Poland’s Enterprise Investors and chairman of Invest Europe’s Central and Eastern Europe Task Force.

“Central and Eastern Europe continues to develop dynamic businesses and when the time comes to exit, these private equity-backed companies can have the international reach to appeal to global acquirers, ” added Manz.

Georgiana Bendre