Romanian PE fund Morphosis capital is seeking to invest €5-15m in six companies in 2020

Morphosis Capital team / Photo: Morphosis website

Morphosis capital, a Romanian private equity fund that holds 50 million euro capital announced that has six companies in the pipeline that are part of their investment strategy with potential to receive a capital infusion of 5 to 15 million euros each, Romanian media reported. The names of the companies are so far undisclosed.

The fund that was founded in December 2018, has so far made only one investment, the one from September last year in the Romanian technology company – DocProcess, and is expecting to make at least two new by the end of this year. The second one, as reported by the company, should happen by the end of March 2020. The total capital of 50 million euros, however, should be distributed by the end of 2022 into at least seven companies.

As announced by the fund itself, their interest is Romanian companies with a focus on consumer goods, medical services, technology, and B2B services.

Andrei Gemeneanu, Managing Partner @ Morphosis Capita / Photo: Morphosis website

“2019 has been a milestone year for Romanian entrepreneurship, as several new venture capital funds have emerged on the local market. Finally, Romanian SMEs have access to a robust infrastructure that can help them leave their mark at the international level. After analyzing a large number of Romanian companies last year, we are confident in our investment strategy, as well as in our philosophy, which has been welcomed by entrepreneurs”, explains Andrei Gemeneanu, Managing Partner Morphosis Capital, and adds:

“We are currently in different stages of discussions with visionary founders with whom we would be pleased to partner, while, in parallel, we continue to look for new companies seeking capital for growth,” adds Andrei Gemeneanu.

When it comes to their investment strategy, the team invests in either minority or majority stakes that range between 30% and 70%, depending on the individual business needs. Reportedly, the fund not only provides access to capital but also forms partnerships with portfolio companies that bring true value in their respective businesses.

Just as an illustration, DocProcess, following the capital infusion received from Morphosis, developed its local team, opened a new office in Brasov, and opened a commercial office in Paris, France in order to increase its position in Western Europe.

Supported by the European Investment Fund (EIF) through the Regional Operational Programme, Banca Transilvania, family offices from Belgium and the Middle East as well as successful entrepreneurs from Romania and abroad, the fund is planning to launch their second fund within the next 5 years thus providing a constant access to capital to innovative Romanian companies that aim to expand nationally and internationally.

“When we think of the role of Morphosis in the Romanian market, we like to consider a perspective of over 30 years. We believe that private equity financing can be a force for good, which can contribute to Romania’s economic growth, job creation, transparency and confidence-building. We are pleased to build long-term partnerships with Romanian entrepreneurs, to whom we can provide growth capital either through Morphosis Capital Fund I or through the subsequent funds we intend to launch in Romania in the coming years”, explained Gemeneanu, startup-ro reported.