Warsaw, Poland, July 13, 2021—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.
Clovin, Avallon`s MBO III portfolio company acquired in 2020, manufacturer of washing powder, gels, capsules and other cleaning agents (https://www.clovin.com.pl). Photo credit: Avallon
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.
"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," said Tomasz Stamirowski, Managing Partner of Avallon. "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.
"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," said Ary Naïm, IFC`s Regional Manager for Central and Southeast Europe."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.
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 2020, we invested $22 billion in private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity. For more information, visit www.ifc.org.
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About Avallon MBO Fund III
Avallon MBO is a pioneer and market leader of management buyouts in Poland. For 20 years, we have been investing in enterprises together with their managers. We have participated in over 100 transactions, and the total value of funds we have gathered for investment purposes is EUR 316 million.
Currently, Avallon MBO portfolio consists of:
Avallon MBO Fund III: Clovin
Avallon MBO Fund II: Stangl Technic, EBS, Wosana, Novo Tech, EDC Expert, MPS, Marketplanet
Avallon MBO Fund I: Ceko
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