CEE and CIS Data Insight (Q3 2018)


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Fund managers raised US$884m for funds focused on CEE and CIS through the first three quarters of 2018, represent-ing a 17% year-on-year decline. Not surprisingly, 88% of funds raised in 2018 have accrued to established firms raising follow-on funds. Notably, BaltCap Management reached a final close of EUR100 million (US$117 million) for its BaltCap Infrastructure Fund—its tenth vehicle in the region—and industry veteran Mid Europa Partners is reportedly seeking EUR800 million (US$961 million) for its fifth flagship CEE fund. Mid Europa and other firms in the region have also suc-cessfully closed nine secondary exits already in 2018, including sales to other CEE-focused managers. These exits and the continued success of established CEE franchises could suggest the maturation of the private capital market in the region, but may also signal limited opportunities for new entrants. The number of first-time fund closes in CEE has declined each year since 2015, with only two such funds reaching a close in 2018 thus far. However, Highland Capital reached a close of US$15 million for the first Kyrgyzstan-focused fund recorded by EMPEA and Zubr Capital closed its Belarus-focused fund at US$90 million, suggesting that new managers and strategies may yet be found further east.