The team led by Thomas Bobek, Head of Private Markets at Erste Asset Management, is continuing its existing investment strategy. The team agrees that Europe represents a strategic investment target with significant potential and substantial substance. The new fund of funds will therefore invest specifically in established private equity, venture capital, and buyout funds that offer access to high-growth companies and so-called hidden industrial champions in the region, focusing on strategically critical sectors such as space tech, (cyber)security, and defense.

Europe is coming into focus

The geopolitical and economic shifts of recent years have repositioned Europe as a stable and reliable economic area. This has brought Europe into focus for investors, including large asset pools such as sovereign wealth funds, international pension funds, and major private equity firms.

Central Europe has developed into a growth engine and driver of innovation.

The region has been growing significantly faster than the EU average for decades. Individual countries have considerably lower debt levels and generally lower inflation rates. This strengthens their strategic position, which is further reinforced by competitive cost structures and numerous successful startups and innovations. Moreover, many hidden industrial champions are thriving in the still relatively small, fragmented markets. "The reindustrialization of Europe in strategically important key industries will take place in the countries of Central Europe. Anyone who wants to invest in the future of Europe should therefore invest in this region," says Thomas Bobek .

“We put the region on the map”

“Through our investments in the region, we see the success of well-positioned companies and managers,” said Thomas Bobek . The existing investor base, consisting of pension funds, insurance companies, banks, church institutions, and clients from Erste Bank Private Banking, already utilizes its fund-of-funds approach to achieve broad diversification across managers, strategies, sectors, and time periods.

The result of these allocations in private markets is a robust portfolio with

Controlled risk and long-term value potential, which is essential for any portfolio with a long-term investment horizon. “Private equity is a highly competitive field that requires excellent managers and targeted diversification. With our fund-of-funds approach, we offer access to top managers in PE & VC,” says Thomas Bobek .

Europe delivers – also in terms of returns

For a long time, US funds dominated the perception of private markets. But European fund managers have been showing comparable returns over longer periods. "Over a 15-year comparison, we are on par on average," explains Thomas Bobek , "the difference lies less in innovation than in the structure of the capital markets." According to him, an integrated European capital market would be a crucial lever for robust competitiveness and a stable supply of capital.

About Erste Diversified Private Equity I

Launched in 2022 with a volume of approximately €100 million, the fund currently comprises 14 target funds in the areas of growth equity, venture capital, and buyouts. The portfolio ranges from space tech companies, such as the German startup "Isar Aerospace," which develops its own launch vehicles for satellite launches, to established industrial companies like the Czech firm "Borcad," founded in 1990 and successfully producing innovative equipment for major passenger train manufacturers. This diversity underscores the strength of the fund of funds, which is based on targeted investments in companies with a clear growth story and strong European roots.