Romania’s Banca Transilvania joins new PE fund specialized in financing SMEs

Morphosis Capital, a newly-established Romanian private equity firm, announced on Tuesday, February 12, that Banca Transilvania will back its first investment fund, MC Fund I (MCFI), in a move aimed at financing Romanian small and medium-sized enterprises (SME).

MCFI was launched in 2018, with the European Investment Fund (EIF) as an anchor, through the Regional Operational Program co-financed by the European Regional Development Fund.

Morphosis Capital aims to invest at least EUR 5 million per transaction in successful Romanian SMEs active in consumer goods, medical services, technology, and B2B services. The fund is looking for companies with earnings before interest, depreciation, and amortization (EBITDA) of at least EUR 1 million, according to a press release.

Banca Transilvania joined Morphosis Capital Fund I to finance companies in Romania in a joint venture with the four Romanian entrepreneurs, founders of the investment fund.

"BT's strategic priority is financing the Romanian economy, this being our main activity and expertise, given that we have 25 years experience in dealing with local business. Our involvement in Morphosis Capital Fund I is still proof of our appetite and alternative financing solutions to help capitalize and develop local businesses," said Omer Tetik, general manager of Banca Transilvania.

(Photo source: Banca Transilvania)