IFC takes bold step to support lower mid-market companies in CEE


BAKU: The International Finance Corporation (IFC) is committing up to pound 15 million to the newly launched V4C Poland Plus Fund II (V4C II), a private equity fund aimed at supporting lower mid-market companies in Central and Eastern Europe (CEE), Trend reports via the IFC.

This investment seeks to enhance access to financing and expertise, fostering growth and competitiveness for businesses in the region.

V4C II will focus on lower mid-market investments across digital and traditional services sectors, with a primary focus on Poland and Romania. The fund plans to acquire majority stakes in its portfolio companies to improve management teams, optimize operations, implement expansion strategies, and facilitate mergers and acquisitions.

The private equity landscape in CEE has faced challenges, exacerbated by the war in Ukraine and the global economic slowdown post-pandemic. In 2023, the region saw its lowest fundraising volumes since 2015, with only pound 812 million raised. IFC’s investment is expected to
support emerging fund managers and signal confidence to other funds operating in the region.

With over 20 years of experience supporting private equity funds in Eastern Europe, IFC has invested over $420 million in 20 private equity funds across CEE.

Source: Trend News Agency