Morphosis Capital Secures €130M for CEE Growth Equity
September 6, 2025, 9:34 pm
Morphosis Capital Fund II officially closed at €130 million, significantly exceeding its initial hard cap. This landmark achievement cements its position in Central and Eastern European private equity. The fund is the first in the CEE region to secure support from all three major institutions: EIF, EBRD, IFC. It targets high-potential SMEs in sectors like healthcare, B2B services, retail, and manufacturing across Romania and neighboring countries. With three investments already made, including a cross-border deal, Morphosis demonstrates strong regional focus. This successful closure underscores robust investor confidence in CEE's growth trajectory, even amidst global uncertainty. The firm plans 2-3 new deals annually, aiming to build regional champions.
Morphosis Capital Fund II achieved its final close. It secured €130 million. This sum significantly oversubscribed its initial hard cap. Investor demand proved exceptionally strong. The Bucharest-based firm marked a major milestone. This strengthens its standing in Central and Eastern European (CEE) private equity.
The fund secured unprecedented institutional backing. The European Investment Fund (EIF) participated. The European Bank for Reconstruction and Development (EBRD) also contributed. The International Finance Corporation (IFC) joined. This makes Morphosis Capital unique. No other CEE private equity firm holds this distinct support. This tri-party endorsement signals robust due diligence. It reflects high confidence in Morphosis Capital's strategy. EIF's involvement extends from Fund I. It leverages Romania's National Recovery and Resilience Plan (NRRP). The EU’s InvestEU program further supports it. These programs channel vital funds into strategic regional development. Additional capital came from local and international family offices. Vybros Capital Partners and Inspire Asset Management were key contributors.
Fundraising took place from 2023 to 2025. This period presented significant global challenges. Macroeconomic uncertainty clouded financial markets worldwide. Elevated inflation and interest rates impacted investment decisions. Political instability added further complexity. Despite these headwinds, investor trust remained robust. The firm successfully doubled the size of its first fund. This validated their focused investment approach. It demonstrated resilience in challenging market conditions.
The traditional view often positioned Western Europe as stable. Eastern Europe frequently implied volatility. This old paradigm has shifted dramatically. Instability now exists across global markets. Yet, the CEE region offers significant growth potential. This unique combination creates compelling investment opportunities. Morphosis Capital successfully built a well-balanced investor base. It blends institutional depth with entrepreneurial drive. Over €50 million originates from successful business founders. These entrepreneurs hail from Romania and Western Europe. They bring valuable operational insights. They offer decades of company-building and exit experience. This capital provides a unique strategic advantage. It combines global institutional backing with hands-on entrepreneurial expertise.
Morphosis Capital Fund II targets small and medium-sized enterprises (SMEs). These companies typically demonstrate EBITDA between €1 million and €5 million. The fund plans to invest €10 million to €15 million per deal. Its strategy favors majority or joint-control stakes. This allows active involvement in portfolio company growth. The geographic focus centers primarily on Romania. It also strategically extends to Bulgaria, Croatia, Czechia, Poland, and Slovakia. This regional expansion capitalizes on untapped market potential. Fragmentation in these local industries presents clear growth avenues. Companies can accelerate expansion through organic strategies. Strategic acquisitions further drive value creation.
Key sectors for investment include healthcare. This sector shows consistent resilience and growth. B2B services are also a focus. They benefit from digital transformation trends. Consumer products, retail, and niche manufacturing complete the portfolio. These sectors demonstrate robust fundamentals. They offer clear paths to scale. Demand for these essential goods and services remains strong across the region.
The fund has already deployed capital into three impactful companies. Romania Education Alliance (REA) is one. REA operates a private K12 education platform. It addresses growing demand for quality education. La Cocos represents another investment. It is a Romanian "hard discounter" supermarket chain. La Cocos redefines value retail in the country. EnduroSat marks the third investment. This European provider specializes in high-end satellite and space services. It represents Morphosis Capital’s first cross-border investment. This signals a clear intent for technology-driven global businesses. EnduroSat embodies regional innovation reaching international markets.
The firm anticipates a busy investment schedule. Over the next two to three years, Morphosis expects two to three new investments annually. Portfolio company selection prioritizes strong financial health. It also demands healthy organizational cultures. Clear strategies for scale are paramount. These include organic growth or strategic buy-and-build models. The ultimate goal remains clear. Drive performance and create compelling exit opportunities for investors. Morphosis actively seeks businesses with robust fundamentals. It looks for those poised for significant regional expansion.
Morphosis Capital carries a profound responsibility to the ecosystem. As an emerging private equity player, it commits to delivering. Both superior performance and impeccable reputation are key metrics. The firm combines deep local insight with global investment standards. It aims to build market-leading companies. These companies thrive in dynamic CEE environments. Fund II is now fully closed. Capital stands ready for immediate deployment. Morphosis enters its next phase with significant momentum. Its expanding network of partners commits to long-term value creation. This operation benefits from substantial EU funds. NextGenerationEU provides financial backing. The Government of Romania, under the Romania Recovery Equity Fund, also contributes. Further support comes from the InvestEU Fund. These strategic partnerships underscore the regional and international significance of Morphosis Capital's work.
Morphosis Capital Fund II achieved its final close. It secured €130 million. This sum significantly oversubscribed its initial hard cap. Investor demand proved exceptionally strong. The Bucharest-based firm marked a major milestone. This strengthens its standing in Central and Eastern European (CEE) private equity.
The fund secured unprecedented institutional backing. The European Investment Fund (EIF) participated. The European Bank for Reconstruction and Development (EBRD) also contributed. The International Finance Corporation (IFC) joined. This makes Morphosis Capital unique. No other CEE private equity firm holds this distinct support. This tri-party endorsement signals robust due diligence. It reflects high confidence in Morphosis Capital's strategy. EIF's involvement extends from Fund I. It leverages Romania's National Recovery and Resilience Plan (NRRP). The EU’s InvestEU program further supports it. These programs channel vital funds into strategic regional development. Additional capital came from local and international family offices. Vybros Capital Partners and Inspire Asset Management were key contributors.
Fundraising took place from 2023 to 2025. This period presented significant global challenges. Macroeconomic uncertainty clouded financial markets worldwide. Elevated inflation and interest rates impacted investment decisions. Political instability added further complexity. Despite these headwinds, investor trust remained robust. The firm successfully doubled the size of its first fund. This validated their focused investment approach. It demonstrated resilience in challenging market conditions.
The traditional view often positioned Western Europe as stable. Eastern Europe frequently implied volatility. This old paradigm has shifted dramatically. Instability now exists across global markets. Yet, the CEE region offers significant growth potential. This unique combination creates compelling investment opportunities. Morphosis Capital successfully built a well-balanced investor base. It blends institutional depth with entrepreneurial drive. Over €50 million originates from successful business founders. These entrepreneurs hail from Romania and Western Europe. They bring valuable operational insights. They offer decades of company-building and exit experience. This capital provides a unique strategic advantage. It combines global institutional backing with hands-on entrepreneurial expertise.
Morphosis Capital Fund II targets small and medium-sized enterprises (SMEs). These companies typically demonstrate EBITDA between €1 million and €5 million. The fund plans to invest €10 million to €15 million per deal. Its strategy favors majority or joint-control stakes. This allows active involvement in portfolio company growth. The geographic focus centers primarily on Romania. It also strategically extends to Bulgaria, Croatia, Czechia, Poland, and Slovakia. This regional expansion capitalizes on untapped market potential. Fragmentation in these local industries presents clear growth avenues. Companies can accelerate expansion through organic strategies. Strategic acquisitions further drive value creation.
Key sectors for investment include healthcare. This sector shows consistent resilience and growth. B2B services are also a focus. They benefit from digital transformation trends. Consumer products, retail, and niche manufacturing complete the portfolio. These sectors demonstrate robust fundamentals. They offer clear paths to scale. Demand for these essential goods and services remains strong across the region.
The fund has already deployed capital into three impactful companies. Romania Education Alliance (REA) is one. REA operates a private K12 education platform. It addresses growing demand for quality education. La Cocos represents another investment. It is a Romanian "hard discounter" supermarket chain. La Cocos redefines value retail in the country. EnduroSat marks the third investment. This European provider specializes in high-end satellite and space services. It represents Morphosis Capital’s first cross-border investment. This signals a clear intent for technology-driven global businesses. EnduroSat embodies regional innovation reaching international markets.
The firm anticipates a busy investment schedule. Over the next two to three years, Morphosis expects two to three new investments annually. Portfolio company selection prioritizes strong financial health. It also demands healthy organizational cultures. Clear strategies for scale are paramount. These include organic growth or strategic buy-and-build models. The ultimate goal remains clear. Drive performance and create compelling exit opportunities for investors. Morphosis actively seeks businesses with robust fundamentals. It looks for those poised for significant regional expansion.
Morphosis Capital carries a profound responsibility to the ecosystem. As an emerging private equity player, it commits to delivering. Both superior performance and impeccable reputation are key metrics. The firm combines deep local insight with global investment standards. It aims to build market-leading companies. These companies thrive in dynamic CEE environments. Fund II is now fully closed. Capital stands ready for immediate deployment. Morphosis enters its next phase with significant momentum. Its expanding network of partners commits to long-term value creation. This operation benefits from substantial EU funds. NextGenerationEU provides financial backing. The Government of Romania, under the Romania Recovery Equity Fund, also contributes. Further support comes from the InvestEU Fund. These strategic partnerships underscore the regional and international significance of Morphosis Capital's work.