Source: www.investeurope.eu (www.evca.eu)

Brussels, 29 August 2012. The European Private Equity and Venture Capital Association (EVCA) today releases its “Central and Eastern Europe Statistics 2011" report, which once again demonstrates the region’s strength and resilience and underpins its strong potential. The year 2011 was another year of growth and recovery from the 2009 trough, establishing the CEE region as an area of reasonable stability with relative fiscal prudence and continued positive prospects. The EVCA “Central and Eastern Europe Statistics 2011" shows that:

    • Private equity and venture capital funds focused on CEE attracted €941m of new funds in 2011, up 48% compared to 2010 (and more than 135% on the previous year), an increase mainly driven by buyout funds. In line with overall European trends, these figures illustrate the region’s continued recovery and important role in the European economy.
    • A total of €1,244m was invested in the CEE region in 2011, a slight decrease of 4.6% compared to 2010.
    • Total investments as a percentage of GDP remained relatively constant for both the CEE region and for Europe as a whole in 2011, with the CEE region recording 0.105% compared to the Europe-wide average of 0.326%. This indicates the untapped potential of the CEE region for development of private equity.
    • 195 companies received private equity backing in 2011 in the CEE region, a significant increase of 17% compared to 2010, driven by an increase in venture financings.
    • Investment activity was concentrated in the CEE region’s larger countries in 2011, similar to previous years, with Poland again accounting for the largest share of CEE investments at 55% of the total.
    • Venture capital investments grew significantly by 57% to account for 7.6% of total investments in CEE in 2011, one of the highest recorded proportions, driven primarily by a significant 85% increase in start-up investments. The number of venture financed companies grew to 97, or 49% of all companies receiving private equity investment in CEE in 2011. It is clear that certain countries’ programs targeted to close the “equity gap" are starting to have an impact.
    • Divestment activity in 2011 showed a significant increase to reach an all-time high in CEE of €1,383m (measured at investment cost).

Dörte Höppner, The EVCA’s Secretary-General, pointed: “The Central and Eastern Europe region’s 2011 positive dynamics demonstrates how private equity and venture capital can be a major provider of finance, and a reliable one, stable throughout the toughest economic conditions, driving Europe’s economic recovery."

Robert Manz, chairman of the EVCA’s Central and Eastern Europe Task Force, said: “Central and Eastern Europe registered a solid performance in 2011 in all activity areas. It confirmed once again that it is primarily a mid-market buyout and growth capital market while at the same time showing a significant increase in the proportion of venture activity. A number of very interesting new investments as well as exits took place that are making investors in the PE asset class once again take note of the potential of this dynamic region."

The CEE report is available here. The EVCA CEE report was produced in collaboration with the EVCA’s CEE Task Force and PEREP_Analytics statistic unit. The EVCA would like to thank Gide Loyrette Nouel Warsaw Office for their sponsorship.

Disclaimer: the information contained in this report has been produced by the EVCA, based on PEREP_Analytics data. Although the EVCA has taken suitable steps to ensure the reliability of the information presented, it cannot guarantee the accuracy of the information collected. Therefore, the EVCA cannot accept responsibility for any decision made or action taken based upon this report or the information provided herein.