Avallon MBO Fund III increased by EUR 44 million. The Fund has raised a total of EUR 137.1 million for transactions with managers
Partners (from left): Krzysztof Kuźbik - Partner, Marcin Konarski - Partner, Agnieszka Pakulska - Partner,
Piotr Miller - Senior Partner, Tomasz Stamirowski - Managing Partner, Robert Więcławski - Senior Partner
• Avallon, celebrating its 20th anniversary, has raised the level of the Avallon MBO Fund III funds. It has increased the total amount to EUR 137.1 million, thus exceeding the total capital entrusted to the Fund for managing it to PLN 1 billion.
• The final June achievement amounting to EUR 44 a number of renowned international financial institutions took part. They included, among others, International Finance Corporation (IFC), and pension funds from two European countries.
• Avallon's new investments are expected to amount to as much as EUR 15-20 million for each of the companies. The Fund focuses on buyout transactions (MBO) carried out in cooperation with managers, consolidations, foreign expansion, as well as support in succession processes in family businesses.
On completing the last tranche, the Avallon MBO Fund III finally reached EUR 137.1 million. This is a strong closure of the currently celebrated 20th anniversary of the Lodz company:
- In this way, we are closing the second decade of our operation on the market, and at the same time we are entering another phase of our activity. We are implementing our strategy as planned: after the recent exit from ZABERD, we are not taking any breaks. We are working on subsequent exits from the transactions of the Fund II, while, at the same time, intensively processing new projects, which we want to implement already in the second half of this year. We appreciate the trust put in us by our investors, thanks to who we have already exceeded the level of PLN 1 billion entrusted to us for managing - comments Tomasz Stamirowski, managing partner and co-founder of Avallon MBO
Foreign capital wants to invest in Poland
The investors of the Avallon MBO Fund III are renowned international institutions, including those that have previously invested in Avallon funds. One of the investors is International Finance Corporation (IFC), a member of the World Bank Group, which contributed EUR 15 million to the Fund. The European Investment Fund (EIF) invested the funds from its European Guarantee Fund, entrusted to it directly by the European Commission. Another pool of funds was contributed by pension funds.
– We are glad that our achievements so far have proved the effectiveness of our investment strategy, which prompted existing investors to re-entrust us with their capital. We have also managed to acquire new partners who are willing to get involved in cooperation on the Polish market. It is extremely important, especially now, when we are slowly recovering from the pandemic, that Polish enterprises and their managers can count on both financial and substantive support from us - says Tomasz Stamirowski.
Investing with managers is our priority
In line with Avallon's strategy, the Fund's investments will be focused on transactions carried out jointly with managers, including mainly share buyout (MBO), consolidation processes and buyouts of foreign companies. Another specialization of Avallon is supporting managers in succession processes in family businesses. This time, the Lodz fund will be more willing to look at companies operating in the IT area as well as the area of e-commerce.
– Over the 20 years of our professional activity we have participated in more than 100 transactions with managers. Although we do not have any industry preferences, this time, in addition to the usual industries, such as FMCG or any other specialized production, we are going to put attention to what is broadly understood as the IT sector, which in the times of the Covid-19 pandemic has been very busy and growing - comments Tomasz Stamirowski.