The European Bank for Reconstruction and Development (EBRD) has launched a private equity growth fund for small- and medium-sized companies (SMEs) in Bulgaria and Romania.
The Global Romania and Bulgaria Growth Fund is aimed at tackling the difficulties companies have in obtaining credit in the region. The fund will be managed by Global Finance, a Greek company with experience in the area.
Founded in 1991, the company manages more than Ђ400m ($460m) in the region including the $100m Black Sea Fund, which also makes investments primarily in Romania and Bulgaria. The Romania and Bulgaria Growth Fund will have initial capital of Ђ16.25m with plans for it to rise to Ђ20m.
The fund, expected to be fully invested within five years, will acquire minority or majority stakes in companies with an annual turnover of up to Ђ40m and up to 250 staff. The fund aims to have an average investment of Ђ800,000 in each company.
