Morphosis Capital Partners has announced the final close of its second growth capital fund, Morphosis Capital Fund II, at €130 million. The fund exceeded its original hard cap, and with the support and consent of its investors, the size was increased to meet strong demand.
This milestone marks a significant step forward for the Bucharest-based firm, which has steadily built a reputation for backing ambitious small and medium-sized enterprises (SMEs) across Romania and the broader Central and Eastern European region.
The investor base behind Fund II reflects a blend of institutional strength and entrepreneurial experience. It includes three of the world’s most respected development finance institutions—the European Investment Fund (EIF), the European Bank for Reconstruction and Development (EBRD), and the International Finance Corporation (IFC)—alongside a range of institutional asset managers and family offices.
Over €50 million of the fund’s capital comes from successful Romanian and Western European business founders, many of whom have built and exited companies over the past three decades. This mix of global institutional backing and hands-on entrepreneurial capital gives Morphosis a unique edge in identifying and scaling high-potential businesses.
Fund II will focus on investing in SMEs with EBITDA between €1 million and €5 million, deploying capital in the range of €10 million to €15 million per transaction. The fund favors majority or co-control positions and is open to working independently or in partnership with co-investors. The sector focus includes healthcare, B2B services, consumer products, retail, and niche manufacturing.
While Romania remains the fund’s core market, Morphosis is expanding its reach to include Bulgaria, Croatia, Czechia, Poland, and Slovakia. This regional strategy reflects the firm’s belief in the untapped potential of entrepreneurial companies operating in fragmented industries, where growth can be accelerated through organic expansion and strategic acquisitions.
Fund II has already made three investments. The first is Romania Education Alliance (REA), a private K12 education platform focused on delivering high-quality learning experiences. The second is La Cocos, a Romanian hard discounter hypermarket chain that is redefining value retail in the country. The third is EnduroSat, a European provider of high-end satellites and space services, which marks Morphosis Capital’s first cross-border investment and signals its intent to back technology-driven businesses with global ambitions.
Over the next two to three years, Morphosis expects to make two to three new investments annually from Fund II. In selecting portfolio companies, the firm will continue to prioritize businesses with strong financial fundamentals, healthy organizational cultures, and clear paths to scale—either through organic growth or buy-and-build strategies. The goal is not only to drive performance but also to create compelling exit opportunities for investors.
The closing of Fund II also cements Morphosis Capital’s position as the only Romanian-focused private equity firm to secure backing from all three major international financial institutions. EIF’s continued support builds on its anchor role in Fund I and is facilitated through the European Union’s InvestEU Fund and Romania’s National Recovery and Resilience Plan (NRRP). Additional support from family offices such as Vybros Capital Partners and Inspire Asset Management further strengthens the fund’s foundation.
The firm’s approach combines local insight with global standards, aiming to build market-leading companies that can thrive in dynamic environments. With Fund II now fully closed and capital ready to deploy, Morphosis is entering its next phase with momentum, clarity, and a growing network of partners committed to long-term value creation.
The European Union funds this operation – NextGenerationEU with the financial backing of the Government of Romania under the Romania Recovery Equity Fund and benefits from the support of the European Union under the InvestEU Fund.
KEY QUOTES:
“Closing a 130 million euro fund against the backdrop of macroeconomic uncertainty and political volatility is an extraordinary achievement. When we launched this effort, the idea of doubling the size of our first fund sounded ambitious. The 2023-2025 period when we were fundraising was marked by a high degree of volatility – locally, regionally, and globally. And yet, the continued trust of investors, from global institutions to Romanian entrepreneurs, validated our approach. The old paradigm assumed Western Europe meant stability and Eastern Europe – volatility.”
“Today, volatility is everywhere, but in our region, it comes hand-in-hand with growth. This combination creates opportunity. We are grateful and proud to have built a well-balanced LP base that blends institutional depth with entrepreneurial drive. As we move forward, we look to continue deploying this capital into both Romanian and regional companies that have the ambition and fundamentals to scale. In addition, we think that as an emerging player in Private Equity in Romania and in the region, we have the responsibility towards the ecosystem to walk the talk in respect to performance and reputation, so we remain committed to delivering on both.”
Andrei Gemeneanu, Managing Partner at Morphosis Capital
