MCI Capital is preparing to make its first healthcare investment as the Polish private equity firm looks to capitalise on demographic trends and subdued valuations across Central and Eastern Europe, according to sources cited by Bloomberg.

The Warsaw-listed investor, traditionally focused on medium-sized technology companies, is in advanced talks on two transactions and expects to complete its first deal in the healthcare sector this year, Managing Partner Pawel Borys told Bloomberg.

“Healthcare is an attractive sector for us,” Borys said. “The big potential isn’t only in rising expenses on private services, including longevity, beauty or diagnostics, but also in the transfer of technology to traditional businesses.”

MCI operates as an evergreen fund, providing greater flexibility than traditional closed-end structures. The firm’s assets reached a record 2.5bn zloty ($689m) earlier this year, supported by 700m zloty in cash from four exits, including the sale of e-commerce platform IAI Group to Montagu Private Equity.

Borys noted that most private equity firms in the region have faced challenges raising capital as foreign investors pull back, leaving local players positioned to seize new opportunities. Valuations of private assets remain 20% to 30% below those in Western Europe, he added.

The firm, which typically invests between $25m and $50m per deal, is also integrating artificial intelligence tools across its portfolio. “AI is especially important in the e-commerce business where we need to get ready for a completely new way of searching for products and services,” Borys said. “We want the companies to show a good AI track record before we decide to sell them.”

MCI’s portfolio includes online retailer Morele.net, travel agent eSky, communications platform Weylo, and hotel booking solutions provider Profitroom.

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