IFC invests €15m in private equity fund Avallon MBO to support mid-cap businesses in Poland

IFC invests €15m in private equity fund Avallon MBO to support mid-cap businesses in Poland

Published: 14-07-2021 12:33:00 | By: Pie Kamau | hits: 1268 | Tags:

Mid-cap enterprises in Poland will have increased access to growth equity, with an IFC investment aiming to help them tackle the impact of COVID-19 while creating jobs and accelerating growth.

IFC is investing €15 million in Avallon MBO Fund III managed by Avallon Partners III SARL. The fund will help close gaps in the lower mid-cap segment in the country's private equity market by providing 10 to 12 companies, some of them in underdeveloped parts of the country, access to the capital they need to expand and improve their operations. As part of its strategy, Avallon MBO Fund III will target in particular women-owned businesses.

Tomasz Stamirowski, Managing Partner, Avallon: "We look forward to our partnership with IFC and welcome this timely support at a time when funding is not readily available, given the pandemic. With over 20 years of experience and a proven track record, the Fund is uniquely positioned as a leader in the buyout market, companies with a turnover of €15-75 million in Poland. We are confident this is the beginning of a long-term and fruitful cooperation."  

IFC will also support the fund manager to implement best practices in identifying, mitigating, and monitoring environmental and social risks.

Ary Naïm, IFC`s Regional Manager for Central and Southeast Europe: "As Poland recovers from the COVID-19 crisis, private equity funds will play an increased role by providing capital and expertise to companies that need to rebound and expand. IFC's investment will help strengthen the competitiveness of the private equity market while supporting the growth of women-led companies in Poland.

IFC's investment will help the Fund reach its final closing target of €137.15 million in a challenging fundraising environment for lower mid-cap funds. Globally, private equity has emerged as a critical source of financing, especially for mid-cap companies. IFC has supported the development of private equity funds in its Europe and Central Asia Region for over 20 years, with commitments of over $500 million as of June 2020.

IFC`s strategy in Poland aims to support innovation in infrastructure, regional and global expansion of local firms, and green inclusive finance.