– In the past 10 years, the highest rate of return over the world, not only in the region, has been achieved in the region of Central and Eastern Europe and Russia, of which the main part is Poland. This is very good news, especially for those who are looking for funding within the private equity funds that collect funds. This is actually something that distinguishes us from all over the world – says the news agency Newseria Investor attorney. Michał Karwacki, Patton Boggs law firm Squire.
Nearly half of the private equity (PE) in Central and Eastern Europe falls on Poland. The main advantage is the Polish economic and political stability combined with relatively high GDP growth, especially in comparison with the euro area. Currently, the capital bypasses Russia and Ukraine, which in the past were important competitors for innovative companies on the Vistula River.
– How would it not sound negative, Ukrainian-Russian conflict in a sense helps us when it comes to accepting investment and private equity financing entities – says Karwacki.
Although Poland is a leader in terms of volume of private equity in Central and Eastern Europe, this market in relation to the economy is still small.
– This is only a 0.1 share of GDP, in Western Europe it is 0.3 percent., so this market is three times bigger. You can see the potential for further development in terms of the macro-scale – says attorney with Patton Boggs Law Firm Squire.
Among the dominant industries in the private equity is the IT, telecommunications and health care. The latter distinguishes Poland from developed markets, where the market of private medical services is much more advanced.
The dynamic development of private equity in time may also have a positive impact on the public market, if developed with funding from PE or venture capital company decide to go on the floor Stock Exchange. For this reason, the positive news is that the fastest growth in the past year took place precisely in the segment of venture capital.
– Very often, it is an investment in an early stage of development of the company, which gives a very high possibility of return of capital. We should also remember that Poland is already quite developed and mature market for venture capital entities that operate and have a competition. This is not one but several companies that specialize in this type of investment – indicates Michał Karwacki.
Among the leaders of venture capital in Poland include MCI, Intercapital and 3TS. The fact of being a leader in the region and one of the highest rates of return in the world is a good omen for the further development of private equity in Poland – says Karwacki.
– This is a very help the Polish funds that collect this year or at the the turn of the next year, funds from the European institutions. There are mainly three: Resource Partners, Value4Capital and Royalton Partners. Of these entities would be noisy as for those who will seek for funds, trying to take advantage of this boom – provides patron of Patton Boggs Law Firm Squire.
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