Morphosis Capital Launches Its Second Investment Fund with Over €100 Million Committed
Morphosis Capital Partners BV, a prominent growth capital fund, has set a significant milestone in its investment journey by launching Morphosis Capital Fund II, a venture that comes with a committed capital of more than 100 million euros. This impressive amount marks a remarkable increase from their inaugural fund, which was established with around 50 million euros.
The main objective of this newly inaugurated fund is to bolster the development of small and medium enterprises (SMEs) across Romania and its neighboring regions. Morphosis Capital has pinpointed several key sectors for investment, including healthcare, B2B services, consumer products, retail, and niche manufacturing. The fund’s strategy is particularly aimed at promoting both organic growth and expansion through mergers and acquisitions, ensuring that entrepreneurial ventures receive the resources they need to scale effectively.
"The launch of our Fund II is a pivotal step in our growth strategy following the success of our initial fund, which allowed us to make six strategic acquisitions in rapidly growing sectors," said Andrei Gemeneanu, the managing partner of Morphosis Capital. He emphasized the importance of the newly formed fund, stating that the increased capital will facilitate support for entrepreneurs not only in Romania but also across Central and Eastern Europe. The first fund reported an impressive internal rate of return (IRR) exceeding 30%, solidifying the firm’s reputation as a reliable partner for both portfolio companies and investors.
Through Fund II, Morphosis Capital anticipates making between 9 to 10 investments ranging from 10 to 15 million euros each, compared to the previous fund, which had six investments of between 5 to 10 million euros. While the primary focus remains on Romanian businesses, the scope has expanded to include countries like Bulgaria, Croatia, Czech Republic, Poland, Slovakia, and Slovenia. The fund seeks companies with an EBITDA ranging from 1 to 5 million euros, emphasizing majority stake acquisitions either independently or in conjunction with co-investors.
For the first time, Morphosis Capital has adopted a regional expansion strategy, marking a departure from the singular focus on Romania in their initial fund. This strategic shift has led to the team size increasing from eight to twelve members as of 2024, a reflection of the scale of their new ambitions. The growth in fund size and investment amounts from Fund I to Fund II underscores both the robust performance of the first fund and the solidified trust and backing from investors.
When selecting portfolio companies, Morphosis Capital looks for those operating in expanding markets within fragmented industries, showcasing potential for growth through organic strategies or acquisitions. The fund prioritizes firms with strong financial performance, sound organizational cultures, and promising acquisition prospects, thus ensuring attractive exit opportunities for investors.
Already, Morphosis Capital Fund II has made two noteworthy investments. The first is in Mark Twain International School (MTIS), Romania's inaugural private educational establishment that offers a dual curriculum. Their second recent investment was in Supermarket La Cocos, a local retailer, finalized in December 2024.
The establishment of Morphosis Capital is further supported by the National Recovery and Resilience Plan and the EU's InvestEU Fund, managed by the European Investment Fund. The FEI, which played a critical role as a primary investor in the first fund, continues to foster the expansion of SMEs in Romania and the region overall. Additional capital from the European Bank for Reconstruction and Development and commitments from the International Finance Corporation have also been secured, making Morphosis Capital the first private equity fund with a major focus on Romania to gather resources from all three leading international financial institutions.
Moreover, the fund has successfully garnered confidence from both local and international family offices, including Vybros Capital Partners from Belgium and Inspire Asset Management, further diversifying its investor base. This initiative is financed by the EU – NextGenerationEU, receiving financial backing from the Romanian government via the Romanian Recovery Capital Fund. This collaborative support from the EU and national bodies demonstrates a strong commitment to enhancing the investment landscape for SMEs in Romania and beyond.
The main objective of this newly inaugurated fund is to bolster the development of small and medium enterprises (SMEs) across Romania and its neighboring regions. Morphosis Capital has pinpointed several key sectors for investment, including healthcare, B2B services, consumer products, retail, and niche manufacturing. The fund’s strategy is particularly aimed at promoting both organic growth and expansion through mergers and acquisitions, ensuring that entrepreneurial ventures receive the resources they need to scale effectively.
"The launch of our Fund II is a pivotal step in our growth strategy following the success of our initial fund, which allowed us to make six strategic acquisitions in rapidly growing sectors," said Andrei Gemeneanu, the managing partner of Morphosis Capital. He emphasized the importance of the newly formed fund, stating that the increased capital will facilitate support for entrepreneurs not only in Romania but also across Central and Eastern Europe. The first fund reported an impressive internal rate of return (IRR) exceeding 30%, solidifying the firm’s reputation as a reliable partner for both portfolio companies and investors.
Through Fund II, Morphosis Capital anticipates making between 9 to 10 investments ranging from 10 to 15 million euros each, compared to the previous fund, which had six investments of between 5 to 10 million euros. While the primary focus remains on Romanian businesses, the scope has expanded to include countries like Bulgaria, Croatia, Czech Republic, Poland, Slovakia, and Slovenia. The fund seeks companies with an EBITDA ranging from 1 to 5 million euros, emphasizing majority stake acquisitions either independently or in conjunction with co-investors.
For the first time, Morphosis Capital has adopted a regional expansion strategy, marking a departure from the singular focus on Romania in their initial fund. This strategic shift has led to the team size increasing from eight to twelve members as of 2024, a reflection of the scale of their new ambitions. The growth in fund size and investment amounts from Fund I to Fund II underscores both the robust performance of the first fund and the solidified trust and backing from investors.
When selecting portfolio companies, Morphosis Capital looks for those operating in expanding markets within fragmented industries, showcasing potential for growth through organic strategies or acquisitions. The fund prioritizes firms with strong financial performance, sound organizational cultures, and promising acquisition prospects, thus ensuring attractive exit opportunities for investors.
Already, Morphosis Capital Fund II has made two noteworthy investments. The first is in Mark Twain International School (MTIS), Romania's inaugural private educational establishment that offers a dual curriculum. Their second recent investment was in Supermarket La Cocos, a local retailer, finalized in December 2024.
The establishment of Morphosis Capital is further supported by the National Recovery and Resilience Plan and the EU's InvestEU Fund, managed by the European Investment Fund. The FEI, which played a critical role as a primary investor in the first fund, continues to foster the expansion of SMEs in Romania and the region overall. Additional capital from the European Bank for Reconstruction and Development and commitments from the International Finance Corporation have also been secured, making Morphosis Capital the first private equity fund with a major focus on Romania to gather resources from all three leading international financial institutions.
Moreover, the fund has successfully garnered confidence from both local and international family offices, including Vybros Capital Partners from Belgium and Inspire Asset Management, further diversifying its investor base. This initiative is financed by the EU – NextGenerationEU, receiving financial backing from the Romanian government via the Romanian Recovery Capital Fund. This collaborative support from the EU and national bodies demonstrates a strong commitment to enhancing the investment landscape for SMEs in Romania and beyond.
Topics Financial Services & Investing）
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