Four CEE funds receive €80M from Romanian Recovery Equity Fund

Romanian Recovery Equity Fund will invest €80 million in four local investment funds —  Innova/7, Booster Capital, GapMinder II, and Morphosis Capital I, in the frames of the EU Recovery and Resilience Program. Four funds will invest in at least 30 startups and companies in the development stage from technology, manufacturing, FMCG, services for firms and individuals, and healthcare sectors.

  • Romanian Recovery Equity Fund was launched in 2021 by the European Investment Fund and the Government of Romania as a new fund-of-funds initiative to support local businesses with access to equity finance leveraging EU resources.
  • The REF does not invest directly in businesses — these underlying investments in portfolio companies will be carried out via the fund partners. Underlying funds could be national or regional, new or existing, and should commit to invest into Romania at least the equivalent of the contribution received from REF.
  • The recently approved funds — Innova/7, Booster Capital, GapMinder II, and Morphosis Capital II, were selected through the open call published in August 2022.
    • Innova Capital is a Warsaw-based independent private equity firm, that launched its latest fund, Innova/7 in 2022.
    • Booster Capital, Romanian buyout investment fund, launched in 2022. The received funds will be directed to its Booster Capital I fund.
    • Romanian VC fund, GapMinder that targets IT software and services startups in Romania and Central Eastern. Among its investment is €200,000 round for HRtech startup Undelucram.
    • Morphosis Capital, the Bucharest-based private equity firm that seeks to invest in companies operating in consumer, niche healthcare, technology, and B2B service sectors.
  • An estimated average allocation is €20 million per fund, but the exact amounts will be announced upon each individual signature of the contribution agreement.
  • The call for obtaining financing from REF is open until the end of 2025. The funds can apply here.