Warsaw, Poland, July 26, 2023—To facilitate access to new markets and expand access to finance for businesses in Central and Eastern Europe, IFC has invested €40 million in Enterprise Fund IX, a private equity fund managed by Enterprise Investors, one of the region's longest-operating fund managers.
With IFC`s support, Enterprise Fund IX will be able to provide growth capital to mid-market companies in Poland and other countries in the region, including Romania, Bulgaria, and Croatia. The fund will invest across a variety of sectors, with a particular focus on consumer-oriented products and services—retail or financial services, export-oriented manufacturing, and information technology companies, which are key to creating jobs and boosting the region's competitiveness.
IFC's infusion of capital comes at a critical time for the region. Russia's invasion of Ukraine has increased investors' risk perception, making private equity fundraising across the region more challenging, even for established fund managers — in a recent survey among private equity firms in the region, 88 percent of respondents reported that Russia's invasion of Ukraine had a negative or significantly negative impact on fundraising.
"Private equity funds play an important role in times of uncertainty, as they provide critical capital and resources that can help companies respond effectively to changing conditions, grow their business, and create jobs," said Ary Naïm, IFC Manager for Central and South Europe. "As a countercyclical investor, IFC brings and mobilizes capital where and when it's needed most, by making direct investments and partnering with key fund managers in the ecosystem like Enterprise Investors."
IFC will also work with Enterprise Investors to expand the firm's gender focus, supporting the fund manager in enhancing the gender-lens investing strategy, and promoting gender diversity within the firm's team and across the fund's investees.
IFC has backed private sector development in Poland for over 30 years, with a committed exposure of $725 million as of July 2023.
About IFC
IFC—a member of the World Bank—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 2022, IFC committed a record $32.8 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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