Private equity fund Prosperus Growth Capital, one of the three funds under the CROGIP program, fundraised EUR 51 million from investors in the first closing. Prosperus Growth Capital is managed by Prosperus Invest, whose management team confirmed the completion of the first closing and the start of operations for their third private equity fund.
Prosperus Growth Capital is one of three funds supported by the European Investment Fund (EIF) and the Croatian Bank for Reconstruction and Development (HBOR) through the CROGIP program, investing 49.99% of the fund's capital in the first closing. The EIF and HBOR launched CROGIP in 2019 as a 70 million EUR investment program to support fast-growing SMEs and mid-caps established and operating in Croatia. The program was later expanded to 80 million EUR in 2020.
Tamara Perko, President of HBOR's Management Board, said: “It makes us very proud that HBOR took part in the establishment of the growth capital funds, through which entrepreneurs will have an alternative form of financing. Since the private equity market in Croatia is still underdeveloped, HBOR initiated a number of activities for promoting the development of this form of financing. With HBOR's support, a venture capital fund intended for start-ups began to operate last year (FRC2 Croatia Partners). With the establishment of these three funds under the CROGIP programme, alternative forms of financing will be made possible from this autumn onwards for more mature companies as well, regardless of the sector they operate in.”
Prosperus Invest plans to increase the size of the fund to a maximum of EUR 70 million in the final closing during 2021. Half of the capital was raised from institutional investors in the domestic market, among which key partners are mandatory pension funds.
Prosperus Growth Capital fund is obliged to invest at least 75 % of its capital in the Croatian companies, and the rest can be invested in companies from the region. The fund’s strategy will be to invest in SME and mid-caps with strong consolidation potential in the region, and the planned range of values of each investment is between EUR 5 and 10 million. Prosperus Growth Capital fund will target propulsive companies with unique or differentiated products and services suitable for maintaining a competitive advantage and gaining significant market shares. Prosperus sees the greatest potential in tourism, renewable energy, healthcare, consumer goods and business process management sector.
Emphasizing that the support of EIF and HBOR for such funds is of key importance, the first man of Prosperus, Joško Miliša, says that they are especially proud that most investors from their first fund follow them in the new fund.
Prosperus is a member of the Croatian Private Equity and Venture Capital Association (CVCA).