Erste Group and Erste Bank Polska invest in Polish fund of funds to strengthen the country’s innovation ecosystem

Erste Group Bank AG (“Erste Group”) and Erste Bank Polska S.A. (“Erste Bank Polska”) today announced a joint investment in Innovate PL FoF, a fund-of-funds and a central pillar of the “Innovate Poland” initiative under the patronage of the Polish Ministry of Finance. The public-private initiative aims to mobilise institutional capital for innovative and high-growth companies in Poland by strengthening investment in private equity (PE), private debt (PD) and venture capital (VC) funds. Joining as part of the fund’s second closing, Erste Group and Erste Bank Polska will become the first privately owned, listed banks to invest in Innovate PL FoF.

“If Europe wants more champions, it must create the conditions for them to scale. Poland has the talent, ambition and economic strength to produce more companies that can compete internationally. Through our investment in Innovate Poland, we are helping to build the financing ecosystem these companies need to scale. It also underlines our commitment to being a long-term partner to Poland and Central Europe,” said Peter Bosek, CEO of Erste Group.

Innovate Poland brings together Polish development institutions, European partners and commercial investors to strengthen the availability of growth capital in the Polish economy. Through its investment vehicles, the initiative channels institutional capital into professionally managed private equity, private debt funds and venture capital funds. These underlying funds provide capital which enables their portfolio companies to either grow, innovate, scale and internationalize.

The initiative is supported by institutions including the Polish Development Fund PFR, the Polish development bank BGK and the European Investment Fund. With the participation of Erste Group, Erste Bank Polska and other investors, Innovate PL FoF is expected to reach total commitments of nearly 3 billion Polish zloty, or approximately 680 million euros at an exchange rate of 4.4185 Polish zloty per euro.

“Polish companies have enormous potential. However, they need access to capital that enables them to compete on an increasingly larger scale. As a bank, we want to help expand that access and support businesses that are driving innovation. This ambition is also shared by Erste Group, whose participation in the Innovate Poland program confirms that Poland is a strategic market for the Group and one for which it has long-term plans,” said Michał Gajewski, CEO of Erste Bank Polska.

Established as part of Innovate Poland, Innovate PL FoF does not invest directly in individual companies. Instead, it allocates capital to private equity, private debt and venture capital funds. This fund-of-funds structure is designed to mobilise additional private capital, strengthen Poland’s investment fund market and improve access to financing across different stages of a company’s development. Investments are made on commercial terms and are intended to generate market-based returns