Avallon MBO has launched its fourth fund, Avallon MBO Fund IV, with a fundraising target of between €220m and €260m as it looks to build on its strong track record in the management buyout (MBO) space across Poland and Central Europe.

The new vehicle will continue Avallon’s strategy of partnering with top management teams to invest in sectors with high growth potential, including technology, FMCG, and manufacturing. With 25 years of experience and over 100 transactions completed, Avallon remains one of Poland’s leading players in private equity-backed buyouts.

The fund will seek to deploy approximately €20m per investment, with additional firepower coming from co-investments and structured debt, allowing the firm to target both mid-sized and larger opportunities.

“We see the retreat from globalisation and the increasing demand for stable, long-term partners as major advantages for a local fund like ours,” said Tomasz Stamirowski, Managing Partner at Avallon. “Our flexibility and close collaboration with management teams allow us to navigate market volatility and capture sector trends.” Meet Avallon and learn more about fundraising opportunities in the CEE area by joining the CEE Private Equity Conference in Warsaw. 

Avallon’s prior funds have delivered strong performance, with its second fund (Avallon II) generating an almost 17% net annual return for investors.

With positive backing from existing LPs, Avallon plans to expand its investor base for Fund IV, targeting family offices and foundations, with a minimum ticket size set at €5m.

“In today’s uncertain environment, we are seeing an increase in high-quality investment opportunities, particularly from private owners seeking not only capital but true strategic partnership,” added Agnieszka Pakulska, Partner at Avallon.

The move highlights the growing role of regional private equity firms in driving mid-market consolidation and supporting the next generation of company growth in Central Europe.

Source: Avallon