Resource Partners

Carlyle spin-out Resource closes debut fund

Carlyle spin-out Resource Partners has reached a third close on its debut fund on €158m against a target of €150m. The fund, CEE' s only first-time fund to raise money in 2009, overcame market negativity to reach a €51m first close last October and a second close on €102m in May this year.


Despite challenging market conditions, successful fundraising in the CEE region is not out of reach as Kimberly Romaine finds out.

Carlyle spin-out Resource Partners has reached a third close on its debut fund on €158m against a target of €150m. The fund, CEE' s only first-time fund to raise money in 2009, overcame market negativity to reach a €51m first close last October and a second close on €102m in May this year.

Resource Eastern European Equity Partners was raised without the use of a placement agent, after the team was given negative feedback from the advisers pessimistic on the fundraising environment at that time.

A total of 20 prospective LPs were targeted by the team, mostly in Europe and some in the US. The EBRD provided ‘warm' support in early 2009, followed shortly thereafter by Rabobank. Both of the institutions became cornerstones, with EBRD ultimately committing €40m and Rabobank €25m. Terms for the two institutions were ‘commercial' so as not to put off other investors. Following the first close, AXA and EIF also came on board, contributing €50m and €40m respectively. The partners contributed €3m, up from €1.02m at the first close.

The team is believed to be closing its first deal, with an announcement expected next month. Another is due to close in November as well; both are in Poland. 

Resource Partners focus on consumer opportunities, including the food and agribusiness sector in Poland, corresponding to at least 60% of the portfolio. The remainder will be invested across a range of sectors.

Ryszard Wojtkowski, Aleksander Kacprzyk and Piotr Noceń manage the company based in Warsaw. The three, together with investment director Małgorzata Bobrowska-Jarząbek, all came over from the original Carlyle CEE outfit, and make up half the eight-strong Resource Partners' team.

Resource Partners was spawned when in November 2008 Carlyle cut all new initiatives in emerging markets. The team immediately decided to keep the majority of the group together and approached public institutions less constrained by freezes on fundraising and selected private investors with a strategic interest in the region.

Ultimately it has led to unique relationships with their LPs, such as access to Rabobank's expertise in food processing businesses and banking relationship in Poland; or close cooperation with AXA PE Eastern Europe, including joint deal development activities and co-investments.