CEECAT Capital has raised €135 million at the first close of its third investment fund, strengthening its plans to support growing businesses across Central and Eastern Europe and other emerging European markets.
The private equity firm announced that CEECAT Capital Fund III has a target size of €200 million and a hard cap of €250 million. The new fund is already ahead of the €120 million first close achieved by its previous fund and is expected to exceed Fund II’s final size of €154 million.
The fundraising comes as investors continue to look for growth opportunities in emerging European markets, where companies are benefiting from closer integration with the wider European economy, improving infrastructure and a strong pool of technical talent.
EIF and EBRD Back the New Fund
The first close received support from major European financial institutions, including the European Investment Fund (EIF) and the European Bank for Reconstruction and Development (EBRD).
The EIF has committed €40 million to the fund, with part of its investment supported through Romania’s National Recovery and Resilience Plan. The EBRD is also investing up to €40 million in CEECAT Fund III.
Existing limited partners have returned to support the new fund, while family offices and institutional investors have also made new commitments. CEECAT said the strong participation demonstrates continued investor confidence in its strategy and the region.
Anthony Stalker, Partner at CEECAT Capital, said the first close shows continued confidence in Emerging Europe and the firm’s approach to investing in companies with the potential to expand beyond their domestic markets.
Focus on Growing Businesses
CEECAT Fund III will primarily target small and mid-sized businesses with strong growth potential.
The fund will focus on markets including Bulgaria, Croatia, Romania, Serbia, Slovenia and Türkiye. It will also expand CEECAT’s geographic reach into Poland, which is the largest economy in the region.
The investment strategy will focus on companies operating in fragmented industries where there is an opportunity to combine businesses and create larger regional platforms.
CEECAT expects around 65% of its investments to be majority transactions. The firm plans to make equity investments of approximately €15 million to €20 million at the fund’s final close, with capital deployed over a five-year investment period.
Technology and AI Get Greater Attention
Technology is also becoming a more important part of CEECAT’s investment strategy.
Yilmaz Karakas will lead the firm’s artificial intelligence and technology agenda. This includes identifying technology-enabled businesses and helping existing portfolio companies introduce digital technologies and AI into their operations.
Healthcare will remain another important sector, with Didem Ilgaz Anil continuing to lead CEECAT’s healthcare focus.
The approach reflects a broader shift among European investment firms toward businesses that can use technology to improve productivity, expand into new markets and compete internationally.
Why Emerging Europe Matters
CEECAT believes several long-term trends are creating investment opportunities across the region.
These include deeper integration between Central and Eastern European economies and Western European supply chains, rising consumer incomes, renewed momentum toward EU accession and the region’s strong STEM talent base.
For companies in emerging European markets, access to growth capital can help them expand beyond their home countries and compete on a larger European stage.
The EBRD said its investment in Fund III is intended to provide long-term financing to SMEs and mid-cap companies while also supporting the development of private equity markets across its regions.
CEECAT Builds on Fund II
The new fund follows CEECAT Fund II, which closed at €154 million in 2022.
Fund II invested in nine companies across areas including technology, financial services, manufacturing, business services and retail. Its first exit came in early 2026, when CEECAT, together with its partners, sold its investment in Romanian retailer La Cocos to companies of the Schwarz Group.
Two additional Fund II exits are reportedly at an advanced stage.
CEECAT has been investing in Central and Eastern Europe and Türkiye since 2005. The firm currently operates from offices in London, Luxembourg, Bucharest, Belgrade and Istanbul.
A Bigger Role for Cross-Border Growth
One of the central ideas behind Fund III is to help successful local companies become regional businesses.
Rather than focusing only on companies that operate in a single country, CEECAT plans to support businesses that have a realistic opportunity to expand across borders. This can include acquisitions, operational improvements and investments in technology.
The addition of Poland to the firm’s investment markets could further increase the number of opportunities available to the fund.
What the Fund Means for the Region
The €135 million first close represents another significant source of private capital for emerging European businesses.
With a €200 million target and a €250 million hard cap, CEECAT could have substantially more capital available once Fund III reaches its final close.
The fund’s backing from the EIF, EBRD, existing investors and new institutional and family-office investors also highlights the growing interest in the region’s private companies.
For startups and established businesses looking to scale, the availability of larger regional investment funds can create opportunities for expansion, technology adoption and cross-border growth.
CEECAT’s latest fund therefore reflects more than a new fundraising milestone. It signals the firm’s intention to play a larger role in building companies that can compete across Emerging Europe and the wider European market.
