- IFC is investing €15 million into Value4Capital's new V4C Poland Plus II private equity fund to bolster lower mid-market companies in Poland, Romania, and broader CEE.
- Closing on €110m with IFC support, the Fund is striving to reach its €140 million hard cap.
- IFC will support Value4Capital in improving its gender lens in investing and reporting.
Warsaw, July 22, 2024—IFC is investing up to €15 million in the V4C Poland Plus Fund II (V4C II), a new private equity fund, to support lower mid-market companies in the Central and Eastern Europe (CEE) region with vital access to financing and know-how to boost their growth and competitiveness.
V4C II targets lower mid-market investments in both the digital and traditional services sectors in CEE, primarily in Poland and Romania. The fund intends to acquire majority stakes in portfolio companies to strengthen management teams, help optimize operations, implement expansion strategies, and assist in executing merger and acquisition transactions.
Despite a challenging fundraising environment, the fund surpassed its original target size of €100 million with IFC's support. In addition, IFC is supporting Value4Capital in enhancing its gender lens in investing and reporting, aiming to better measure gender diversity in private equity-owned companies.
"Our second independent fund will follow the successful strategy of our first fund, focusing on founder/owner transition situations and looking to capture the fundamental growth of our domestic markets. With IFC's support, we have been able to mobilize even more private capital in this fundraising and increase our fund size along with the growth of our target market," said William R. Watson, Managing Partner of Value4Capital."
Private equity fundraising has become increasingly difficult in CEE following Russia's invasion of Ukraine and the post-pandemic global economic slowdown. 2023 marked the region's lowest fundraising volumes since 2015 with a total of €812 million raised. IFC's investment will help support an emerging small to mid-market fund manager and send a signal to other funds seeking to raise in the region.
"Supporting access to finance through private equity capital is key to promoting innovation and unlocking new pathways for sustainable economic growth," said Ary Naïm, World Bank Group Country Manager for Poland and IFC Manager for Central and South Europe. "This investment builds on our recent support to other funds in the region, helps sustain activity in a challenging environment, and supports market recovery by encouraging commercial investors to return to the market."
IFC has supported the development of private equity funds in Eastern Europe for over 20 years, with investments of over $420 million in 20 private equity funds across CEE to date.
About IFC
IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2023, IFC committed a record $43.7 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. For more information, visit www.ifc.org.
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About Value4Capital
Value4Capital specializes in private equity investments in service businesses, targeting both traditional and digital opportunities. It focuses on Poland and Romania, as well as the other EU member states of Central Europe. Owned and managed by its partners, V4C has over 30 years of mid-market private equity experience in the region and operates from offices in Warsaw and Bucharest. For more information, visit www.value4capital.com.
