Regional Highlights in Private Equity: Key News from Central and Eastern Europe
In a significant move for the private equity landscape, INVL Group has successfully completed the first closing of its second-generation fund, INVL Private Equity Fund II. The fund, which raised €305 million, now stands as the largest private equity vehicle in the Baltics.
INVL Private Equity Fund II's Target Market
The INVL Private Equity Fund II will invest across Lithuania, Latvia, Estonia, Poland, Romania, and the broader EU, focusing on companies with strong growth potential.
Morphosis Capital's Expansion in Romania
Meanwhile, Morphosis Capital, a fund aiming to invest in Small and Medium Enterprises (SMEs) across Romania and neighbouring regions, has launched its second fund, Morphosis Capital Fund II. The new fund, which secured over €100 million in committed capital, is double the size of its predecessor.
MidEuropa's Exit from Diagnostyka
In a separate development, MidEuropa, a leading private equity firm, has exited Diagnostyka, a leading Polish diagnostic service provider, after more than a decade. The IPO, priced at PLN105 (€25) per share, raised more than €400 million in gross proceeds. This makes Diagnostyka's IPO the largest for a private equity-backed company in Poland.
Diagnostyka's Growth under MidEuropa
MidEuropa's investment in Diagnostyka has been instrumental in the company's growth. Since acquiring it in 2011, MidEuropa has fueled Diagnostyka's growth through 120 acquisitions, reinforcing its dominance in European healthcare. The IPO marks MidEuropa's full exit from Diagnostyka.
The Private Equity Landscape in the Baltics and Beyond
The top private equity funds currently active in Lithuania, Latvia, Estonia, Poland, Romania, and broadly in the EU include several key regional players primarily focused on startup and scale-up investments.
In the Baltics, active private equity includes BaltCap, Tera Ventures, 2C Ventures, Change Ventures, and SmartCap, known for both early-stage and growth investments focused heavily on technology, healthtech, cleantech, and advanced manufacturing.
In Poland, Romania, and the wider EU, private equity activity is robust but detailed fund names from the search results are not specified; the market includes large pan-European private equity funds with multi-billion euro target sizes.
Notable deals in these markets include Yeebet Gaming (Latvia), Aerones (Lithuania), and Vok Bikes (Estonia).
Morphosis Capital's Sector Focus
Morphosis Capital targets sectors such as healthcare, B2B services, consumer products and retail, and niche manufacturing.
Diagnostyka's IPO Valuation and First Major Public Offering in 2025
The IPO valuation of Diagnostyka is over €1 billion, making it a significant milestone in the Polish private equity market. The IPO was the first major public offering in Poland in 2025.
This landscape reflects a mix of regional funds with localized industry expertise alongside broader European funds active in these countries' increasingly vibrant private equity markets.
- INVL Private Equity Fund II's investment focus will span Lithuania, Latvia, Estonia, Poland, Romania, and the broader EU, primarily on companies demonstrating strong growth potential.
- Morphosis Capital Fund II, a €100 million fund, seeks investment opportunities in Small and Medium Enterprises (SMEs) across Romania and neighbouring regions, targeting sectors like healthcare, B2B services, consumer products and retail, and niche manufacturing.
- MidEuropa's exit from Diagnostyka resulted in a successful Initial Public Offering (IPO) priced at PLN105 (€25) per share, raising over €400 million in gross proceeds and marking the largest for a private equity-backed company in Poland.
- The private equity landscape in the Baltics and beyond includes key regional players such as BaltCap, Tera Ventures, 2C Ventures, Change Ventures, and SmartCap, which are primarily focused on startup and scale-up investments in technology, healthtech, cleantech, and advanced manufacturing.
