Building a bridge to Central Europe

Bridgepoint, a major private-equity fund, has announced that its CEE regional office will be located in Warsaw.

According to a company statement, Bridgepoint has made no direct investment in companies in Poland and CEE. However, a number of existing Bridgepoint investments in other parts of Europe either have subsidiaries in CEE or source from the region, and officials at Bridgepoint believe it is important to have a presence in Poland in order to offer them assistance.

The company's main investment interest will be focused on developing companies that are already established and which might be looking to bring in an external investor to help them grow further, either by expanding into new markets or by making acquisitions.

Krystyna Gottman-Narożna, a vice president of Investkredit Bank AG Poland, which cooperates with private equity funds, said that until recently Poland's market had not been attractive to major funds because the value of transactions made in Poland was simply too low.

"Bridgepoint's entrance into the Polish market could blaze a trail for other private equity funds to enter CEE," said Gottman-Narożna, adding: "If such a company decides on opening its regional office in Warsaw, it could be a sign that some major investment may soon be announced."

In 2006, Bridgepoint invested over EUR 868 (zł.3,404) million in five new investments. The total value of these investments amounted EUR 3 (zł.11.8) billion.

The company already boasts offices in Frankfurt, London, Luxembourg, Madrid, Milan, Paris and Stockholm.

Gottman-Narożna added that, according to Investkredit Bank, all private-equity funds operating in Poland amount to some EUR 1.5 (zł.5.85) billion, which is not much when compared to such market giants as the Primera Fund, which alone amounts EUR 11 (zł.42.9) billion.