Avallon creates the Third Fund and finalizes its First Investment - Clovin
Avallon has started its third fund (Avallon MBO Fund III), which by the end of its last closure had reached EUR 80.6 million, being 34% higher than the corresponding closure of the previous fund.
It is possible to double the amount of funds to be raised over the next 12 months. The founding of the present fund is also an opportunity to celebrate the first investment of Avallon MBO Fund III.
The new fund currently has financial resources of over PLN 340 million, which, taking into account the credit support, means having nearly 700 million at its disposal to fund new investments. Within the coming 12 months it is possible to double its scale, especially since PLN 80 million have already been declared by current participants, and more talks are in progress.
The fund's investors are renowned international institutional investors. Avallon invests over PLN 21 million in the new fund. The fund's main specialization, which is investment with managers, remains unchanged compared to previous Avallon funds.
The fund is going to invest mainly in companies with a turnover of PLN 60 to 250 million. Investments will be made in up-and-coming industries, including new technologies, FMCG and manufacturing companies. Thanks to co-investment agreements with fund investors and financial partners, the fund will also be able to carry out much larger transactions.
During the process of founding the new fund, two people were promoted to the position of Partners. The team's expansion is also planned.
The fund has actively taken action, finalizing the investment signed in November last year with Clovin - a family company from Czyżew, founded in 1995. Initially, the company focused on the production of professional powdered cleaning products for the industrial segment (e.g. hotels, hospitals). Gradually, it began to introduce household cleaning products for home consumers (B2C). It employs over 230 people, its products go to over 25 countries, and revenues amount to about PLN 130 million.
After the successful investment in Velvet, Clovin is another entity from the FMCG area that will be supported by the Fund in the competition with international concerns.
Tomasz Stamirowski, Managing Partner of Avallon:
"We've joined a small group of private equity companies in Poland that have set up at least three funds. This is a great success of our Łódź team. Succession problems that private companies face and present weakness of the stock market create a good basis for finding interesting projects. We are among the most active funds on the market, which is best demonstrated by the quick execution of the first transaction and advanced work on several more to come".
Agnieszka Pakulska, Partner of Avallon:
"I am glad that we have been able to combine the first closing of the fund with a new investment in Clovin. We are about to implement ambitious development plans for the company. Certainly, the experience gained so far in the investments of previous Avallon funds will positively influence the use of our company's potential. In particular, our goal is to broaden the promotion of the company's brands offering an innovative and quality product portfolio. In this task we will use our experience from Velvet transactions".