Swiss-based private equity fund of funds ALPHA Associates has launched its second fund of funds dedicated to investing in Central and Eastern Europe. ALPHA CEE 2005 has a target of €300m and will stick to the investment strategy of its 1998 predecessor fund 5E Holding.
ALPHA will make primary fund commitments in the new CEE EU member states, the second-round accession countries, and selectively Russia, purchase mature fund interests in the secondary market and make selective direct investments, according to a press release.
The firm said: ‘The private equity industry, which started in the early 90s, has substantially developed and today there is a growing universe of experienced fund managers with demonstrable track records. As the region continues to be underserved with equity capital and the competition among private equity players is limited, entry valuations remain attractive.’
Institutional investors have been showing an increased appetite for private equity funds in Central and Eastern Europe over the last six to 12 months. This partly reflects concern about the level of competition in the more mature Western European market but also a growing population of experienced managers in the emerging markets.
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