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European Bank invests US$ 50 million in Polish private equity fund
The Board of Directors of the European Bank for Reconstruction and Development today announced an equity subscription of up to US$ 50 million (ECU 40.4 million) in the Polish Private Equity Fund, a company to be established to invest in small and medium-sized private enterprises in Poland.
"Through this Fund, the European Bank will contribute to the privatization of existing businesses in Poland and will help develop new small and medium sized private companies, either Polish owned or joint ventures with foreign partners", said Ron Freeman, the Vice-President in charge of Merchant Banking.
"We believe that those who enter the Polish market now as investors in these businesses are well placed to take advantage of substantial growth opportunities, and that the associated risks are manageable", Freeman added.
Other shareholders in the Fund are the Polish-American Enterprise Fund, a corporation established at the initiative of the US Congress to promote the development of the Polish private sector, which will also subscribe up to US$ 50 million (ECU 40.4 million); and the Austrian bank Creditanstalt Bankverein, which will contribute up to US$ 10 million (ECU 8.1 million). It is anticipated that private investors will also participate in the Fund.
The Fund will be managed in Warsaw by a separate management company owned 40% by the Bank and 60% by the Polish-American Enterprise Fund.
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