GED launches second SE Europe fund

The Spanish-based private equity group has held a first close on €51m of its second fund devoted to Bulgaria and Romania.

South-eastern Europe focussed private equity firm GED Capital Development has held a first close of GED Eastern Fund II on €51 million ($66 million).

The new fund, which was launched in June 2004 and has a final target of €100 million, was backed by three cornerstone investors, which committed €25 million in total.

New investor Caja Madrid put up €10 million, while returning investors Bank

There are significant opportunities in Bulgaria and Romania, particularly in the run-up to their accession to the EU in 2007.

Robert Luke, managing director, GED Development Capital

Austria Creditanstalt and Spanish bank Instituto de Credito Official (ICO) invested €10 million and €5 million respectively, according to GED managing director Robert Luke.

GED team members, family and friends contributed €2.6 million, with the remaining commitments coming from a mix of Spanish institutional investors including insurance companies, savings banks and family offices.

The fund has attracted one new non-Spanish investor to date. French real estate developer Industrial Developments International (IDI) contributed €3 million to the first close.

Following the first closing, the fund aims to attract a wider range of European institutional investors to hit its final target before the end of the year, according to Bucharest, Romania-based Luke.

Commenting on the first close, Luke told PEO: “There are significant opportunities in Bulgaria and Romania, particularly in the run-up to their

Caja Madrid: new cornerstone investor

accession to the EU in 2007.”

On the fund’s investment outlook, he said: “There are big opportunities in retail, healthcare and those companies supplying to the infrastructure projects being built for the EU.”

GED Eastern Fund II is the successor to GED’s first fund, which was launched in 1996. The first fund invested €54 million in 12 Romanian companies and has exited seven of those investments to date.