Czech M&A
Central and Eastern Europe has become an increasingly attractive destination
for venture capital and private equity funds as its markets have gradually opened
up with accession to the European Union.
Investment and M&A activity continues to move forward strongly, despite a global
credit crunch, largely due to a less highly leveraged banking system.
Figures from the European Venture Capital Association (EVCA) show that European
Private Equity firms raised €112 billion in 2006, an increase of 54.6% on 2005.
Around €84 billion was allocated to buyouts and €17 billion to venture capital.
Around €71 billion of equity funds were invested during 2006 with the main recipients
being consumer and financial services sectors, with IT, communications and healthcare
close behind.
The majority of private equity investment is still ploughed into more established
Western European markets, although some of the best returns are available in Central
and Eastern Europe (CEE).
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