The European Bank for Reconstruction and Development (EBRD) and Rabobank Group are teaming up to set up a new private equity fund aimed to support businesses during this period of tight liquidity.
The Resource Eastern European Equity Partners I, LP will primarily focus on investing in mid-cap food and agribusinesses in Poland, as well as in other EU member states in central and south-eastern Europe, operating in food processing, manufacturing, retail and logistics sectors, which have been historically underserved by private equity.
The fund will have a first close of €51m, of which the EBRD and Rabobank Group are investing €25m each. Resources Partners GP Ltd, a limited liability company acting as the fund’s General Partner, is contributing €1m. EBRD’s and Rabobank Group’s respective shares will be diluted as third-party financing is raised and the Fund reaches its target size of €200m.
Resource Partners GP Ltd is led by Ryszard Wojtkowski, previously a partner in Enterprise Investors and Carlyle private equity group.
Commenting on the initiative, Nick Tesseyman, EBRD Business Group Director for Financial Institutions and Private Equity, said: “The EBRD is pleased to join forces with Rabobank Group, a leading global bank for the food and agribusiness sectors, and to support the development of the private equity sector in central and south-eastern Europe. This project will bring the much needed resources and knowledge to support the development of prospective businesses in the current more challenging times”.
Sipko Schat, member of the Executive Board of Rabobank, added: “Rabobank has a strong position in the food and agribusiness sector in Poland and we believe private equity investments in these businesses in the region have superior return potential. We are excited to work together with EBRD as our partner in this promising venture”.