Latest updates on private equity sector in Central and Eastern Europe region
Morphosis Capital Fund II Secures €100m, INVL Private Equity Fund II Raises €305m
In the realm of private equity, two significant funds have recently made headlines. Morphosis Capital, a venture capital firm with a focus on SMEs in Romania and neighbouring regions, has launched its second fund, Morphosis Capital Fund II, securing over €100m in committed capital. Simultaneously, INVL Group, a Lithuanian investment group, has completed the first closing of its second-generation private equity fund, INVL Private Equity Fund II, raising an impressive €305m.
Morphosis Capital Fund II aims to invest in companies with strong growth potential, with a focus on sectors such as healthcare, B2B services, consumer products and retail, and niche manufacturing. The fund's target region extends beyond Romania, encompassing Lithuania, Latvia, Estonia, Poland, and the broader EU.
Meanwhile, INVL Private Equity Fund II, now the largest private equity vehicle in the Baltics, will invest across the same regions, following a similar strategy. The initial target for the fund was €250m, but it surpassed this amount, signifying a strong interest in the region's growing business landscape.
One of the most notable public exits in recent years is the Initial Public Offering (IPO) of Diagnostyka, a leading Polish diagnostic service provider backed by MidEuropa. Priced at PLN105 (€25) per share, the listing raised more than €400m in gross proceeds. Since acquiring Diagnostyka in 2011, MidEuropa has fueled its growth through 120 acquisitions. The IPO marks MidEuropa's full exit after more than a decade from Diagnostyka, and the IPO valuation of Diagnostyka is over €1bn.
The Diagnostyka IPO stands among the largest private equity-backed public exits in recent years, further reinforcing MidEuropa's dominance in European healthcare. Following the IPO on February 7, 2025, Diagnostyka was acquired by a consortium led by PZU Group.
These developments underscore the vibrant private equity scene in Europe, with funds continuing to attract significant capital and invest in promising companies across various sectors. The success of Morphosis Capital Fund II and INVL Private Equity Fund II, as well as the impressive IPO of Diagnostyka, are testament to the confidence investors have in the region's economic growth and the potential of its businesses.
