#Romania #Fund II #Bucharest #Morphosis Capital

Morphosis Capital Launches Fund II

Morphosis Capital Partners BV, a prominent growth capital fund based in Romania, proudly announces the launch of its second investment fund, Morphosis Capital Fund II, with a commitment of over 100 million euros. This figure marks a significant increase from the 50 million euros committed to its inaugural fund, reflecting the substantial growth and confidence of investors in Morphosis Capital's strategy.

The primary aim of Fund II is to accelerate the growth of small and medium-sized enterprises (SMEs) across Romania and neighboring regions, including vital sectors such as healthcare, B2B services, consumer products, retail, and specialized manufacturing. This is a crucial development in Morphosis Capital's ongoing mission to support the entrepreneurial ecosystem in Central and Eastern Europe.

Significant Growth Strategy

Andrei Gemeneanu, the Managing Partner at Morphosis Capital, stated, “Building on the success of our first fund, which facilitated six strategic acquisitions in high-growth sectors, the launch of Fund II marks a pivotal step in our growth strategy. The resources at our disposal will empower us to further assist innovative companies across our target regions.” This is not merely a financial endeavor; it’s about fostering a vibrant entrepreneurial culture.

The firm plans to undertake 9 to 10 investments, with each deal ranging from 10 to 15 million euros. This is a notable escalation from the first fund, which executed six investments within a 5 to 10 million euros range. Fund II's investment focus will primarily be on companies based in Romania, while also exploring opportunities in surrounding nations such as Bulgaria, Croatia, Czechia, Poland, Slovakia, and Slovenia.

Targeting Growth Potential

Morphosis Capital seeks to partner with businesses possessing the potential for rapid scaling in fragmented industries, particularly those with strong financials and robust organizational cultures. The fund emphasizes classifying companies that have EBITDA ranging from 1 to 5 million euros and aims for majority stake acquisitions, either solo or with co-investors.

In a strategic shift, this fund marks Morphosis Capital's first endeavor to expand regionally, having previously concentrated solely on Romanian investments. The firm has increased its team from 8 to 12 members to facilitate this ambitious strategy.

Already Delivering Results

Interestingly, Morphosis Capital has already made two strategic investments through Fund II. The first acquisition was in Mark Twain International School, recognized as Romania’s first private educational institution implementing a dual curriculum. Subsequently, in December 2024, they finalized a deal with Supermarket La Cocos, a local retail player.

This fund is co-financed through the National Recovery and Resilience Plan and the InvestEU Fund of the European Union, highlighting its robust support structure. The European Investment Fund, the anchor investor for the initial fund, continues to play an integral role in catalyzing the growth of SMEs in Romania and the surrounding areas. With the backing of vital institutions like the European Bank for Reconstruction and Development and commitments from the International Finance Corporation, Morphosis Capital is further solidifying its place in the market.

The fund has captured the interests of various local and international family offices, notably the Belgium-based Vybros Capital Partners and Inspire Asset Management, reflecting a well-diversified investor base that supports the fund's mission.

As Morphosis Capital embarks on this new chapter with Fund II, it remains dedicated to nurturing innovative businesses and ensuring long-term growth and development within Romania's entrepreneurial landscape and beyond.