The fund was oversubscribed beyond its initially agreed hard cap and, with investor consents, its size was increased accordingly. Fund II is backed by the European Investment Fund (EIF), the European Bank for Reconstruction and Development (EBRD), and the International Finance Corporation (IFC), alongside institutional asset managers and over EUR 50 million in entrepreneurial capital, contributed by both Romanian and Western European business founders.
Fund II has so far made three investments: Romania Education Alliance (REA), a private K12 education platform; La Cocos, a Romanian hard discounter hypermarket chain; and EnduroSat, a European provider of high-end satellites and space services, marking Morphosis Capital’s first cross-border investment. Over the next two to three years, Morphosis Capital anticipates making two to three new investments annually from Fund II.
In selecting portfolio companies, Morphosis Capital will continue to focus on businesses operating in growing markets and fragmented industries, with significant potential to scale through organic development or buy & build strategies.
Morphosis Capital Fund II will pursue investments in SMEs active in sectors such as healthcare, B2B services, consumer products and retail, and niche manufacturing. The fund targets companies with EBITDA between EUR 1 and 5 million, deploying tickets between EUR 10 million and EUR 15 million and favoring majority stakes or co-control positions, either independently or alongside co-investors.
The fund will pursue investments in Romania and beyond, targeting entrepreneurial companies from Bulgaria, Croatia, Czechia, Poland, and Slovakia, it said.
“Closing a EUR 130 million fund against the backdrop of macroeconomic uncertainty and political volatility is an extraordinary achievement. When we launched this effort, the idea of doubling the size of our first fund sounded ambitious. The 2023-2025 period, when we were fundraising, was marked by a high degree of volatility – locally, regionally, and globally. And yet, the continued trust of investors, from global institutions to Romanian entrepreneurs, validated our approach. The old paradigm assumed Western Europe meant stability and Eastern Europe – volatility. Today, volatility is everywhere, but in our region, it comes hand-in-hand with growth. This combination creates opportunity,” said Andrei Gemeneanu, managing partner at Morphosis Capital.
“As we move forward, we look to continue deploying this capital into both Romanian and regional companies that have the ambition and fundamentals to scale. In addition, we think that as an emerging player in Private Equity in Romania and in the region, we have the responsibility towards the ecosystem to walk the talk in respect to performance and reputation, so we remain committed to delivering on both,” he added.
(Photo: Morphosis Capital)
simona@romania-insider.com
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