Morphosis Capital, a Romanian Private Equity Fund launched in December 2018, begins 2020 with six companies in its potential investment pipeline. The Fund, which targets investments in Romanian SMEs from high growth sectors such as FMCG, niche healthcare, technology, and B2B services, has 50 million euro of committed capital which it intends to deploy by the end of 2022, into at least seven highly scalable Romanian companies.
In September last year, the Fund made its first portfolio investment, in a Romanian technology company, DocProcess. Currently, Morphosis Capital has six companies in its pipeline that fit the Fund’s investment strategy and each of them could receive an infusion of capital between 5 and 10 million euros. Morphosis expects to announce its second investment by the end of the first quarter of this year.
“2019 has been a landmark year for Romanian entrepreneurship with several new VC and growth capital funds appearing on the local market. We believe that Romanian SMEs can finally access a robust infrastructure that can help them make their mark at an international level. Having analysed last year a large number of Romanian scale-ups, we are confident with our investment strategy as well as our philosophy, which has been positively received by entrepreneurs. We are currently at different stages of discussion with several visionary and like-minded founders, with whom we would be excited to partner up while, in parallel, we continue to engage with new companies that are searching for growth capital,” said Andrei Gemeneanu, Managing Partner at Morphosis Capital.
Morphosis Capital invests in scalable Romanian SMEs with potential for national and international expansion and an EBITDA of a minimum of half a million euro. The Fund’s flexible investment strategy allows it to invest in either minority or majority stakes that range between 30% and 70%, depending on the individual business needs. In line with the Fund’s philosophy «Private Equity with a human touch», an important pillar of Morphosis Capital’s policy is to not only provide access to capital but to also form partnerships with portfolio companies that bring true value in their respective businesses.
European Investment Fund (EIF) through the Regional Operational Programme, financed by the European Regional Development Fund, is the anchor investor in the Morphosis Capital Fund I. Apart from EIF, investors in Morphosis include Banca Transilvania, family offices from Belgium and the Middle East as well as successful entrepreneurs from Romania and abroad. Encouraged by the potential of local entrepreneurs, the founders of Morphosis are expecting to launch the second fund within the next 5 years to provide constant access to capital to innovative Romanian companies that aim to expand nationally and internationally.
“When we ponder about Morphosis’s role on the Romanian market, we like to think with 30+ years perspective. We believe that private equity can be a force for good, contributing to economic growth in Romania, job creation, improvement of transparency, as well as trust-building. We are looking forward to developing a long-term relationship with Romanian entrepreneurs, to whom we can provide growth capital either through Morphosis Capital Fund I or the subsequent funds that we plan to launch in Romania in the coming years,” added Andrei Gemeneanu.
DocProcess, Morphosis Capital’s first portfolio company has in the course of the last 4 months strengthened its local as well as international presence. Following the infusion of capital from Morphosis in September 2019, DocProcess has grown its local team, opened a new office in Brasov as well as has inaugurated a commercial office in Paris, France, which will help the company that already has an R&D center in Grenoble, to grow its position in Western Europe.