Mid Europa mulls GP-led on crisis-era fund – exclusive

The CEE-focused buyout firm, which is seeking €800m for its fifth flagship, is considering restructuring options for its 2007-vintage fund.

Mid Europa Partners, one of the most active private equity firms focused on Central and Eastern Europe, is exploring liquidity options for its crisis-era buyout fund.

The London-headquartered firm is considering giving investors in the 2007-vintage, €1.5 billion Mid Europa Fund III fund the opportunity to sell their holdings to a secondaries buyer or roll them into a continuation vehicle, according to three sources familiar with the matter.

Evercore is working with Mid Europa and the process is in the early stages, Secondaries Investor understands.

Mid Europa is seeking €800 million for its fifth flagship fund, sister publication Private Equity International reported last year. The firm would not seek a stapled commitment to that fund as part of a GP-led process, according to one of the sources.

Fundraising for vehicles focused purely on CEE dropped steeply in 2018 to $250 million  from $1.45 billion the year before, according to PEI data.

Mid Europa Fund III closed above its €1.25 billion target in 2007, having launched in August of the same year, according to PEI data. Investors include AP Fonden 2, Finnish Local Government Pensions Institution (KEVA) and insurer MetLife.

The fund has four remaining assets including Kent Hospital Group, a Turkish chain of private hospitals, and Waberer’s, a Hungarian logistics company, according to Mid Europa’s website.

The GP-led part of the secondaries market has grown by 66 percent over the past three years and accounted for around one-third of total deal volume last year, according to research by Campbell Lutyens.

Mid Europa and Evercore declined to comment.