Morphosis Capital launches second investment fund with over 100 million euros

Morphosis Capital focuses on Central and Eastern Europe. With Morphosis Capital Fund II, the fund doubles its capital and expands its focus beyond Romania to Bulgaria, Croatia, Poland and other countries.

Bucharest, February 11, 2025 - Morphosis Capital Partners BV, a fund specializing in growth capital, has launched its second investment fund, Morphosis Capital Fund II. The committed capital exceeds 100 million euros, which represents a doubling compared to the first fund. The aim of the fund is to support SMEs in Romania and the region in sectors such as healthcare, B2B services, consumer goods, retail and niche manufacturing.

Doubling of capital as a sign of success

The first Morphosis Capital Fund achieved an impressive performance with six strategic acquisitions, including one full exit and two partial exits with an IRR of over 30%. The new fund will now support companies that can scale through organic growth or mergers & acquisitions with twice as much capital.

With the Morphosis Capital Fund II, we have the resources to support entrepreneurial companies in an even more targeted way. Our goal is to identify innovative companies in Romania and the region and help them grow

Andrei Gemeneanu, Managing Partner at Morphosis Capital

Focus on Romania and regional expansion

While the first fund was exclusively active in Romania, Fund II pursues a regional strategy. In addition to Romania, investments will be made in Bulgaria, Croatia, the Czech Republic, Poland, Slovakia and Slovenia. Target companies have an EBITDA of between 1 and 5 million euros, with Morphosis Capital primarily acquiring majority shareholdings.

Morphosis Capital has increased its team from 8 to 12 members in order to realize the expanded investment volume. The doubling of the fund volume and ticket size demonstrates the growing confidence of investors in Morphosis Capital's strategy and success.

First investments already made

The fund has already completed two investments:

1. Mark Twain International School (MTIS) - the first private educational institution in Romania with a dual curriculum.
2. La Cocos supermarket - a local retailer acquired in December 2024.

These first deals demonstrate Morphosis Capital's broad investment strategy, ranging from education to retail and technology-driven companies.

Support from international investors

Morphosis Capital Fund II is co-financed by the National Recovery and Resilience Plan and the EU's InvestEU Fund. The European Investment Fund (EIF) remains a key partner, having already supported the first fund.

Other institutional investors include the European Bank for Reconstruction and Development and the International Finance Corporation (IFC) - a first for a private equity fund with a focus on Romania. Local and international family offices such as Vybros Capital Partners and Inspire Asset Management have also pledged capital.

Important impetus for the SME landscape in Central and Eastern Europe

The Morphosis Capital Fund II will give SMEs in Romania and neighboring countries greater access to growth capital. The regional expansion, the larger investment volume and the participation of international financial institutions make the fund an important player in the private equity scene in Central and Eastern Europe.