The size of Morphosis Fund II will thus exceed $100 million and the focus will be mostly on Romanian entrepreneurial companies (70%), as well as 2-3 deals in other regions in Europe (30%), such as Bulgaria, Poland, Czechia, Slovakia and Croatia. The company targets higher EBITDA, from EUR1 to EUR5 million.
Morphosis mainly looks at companies in the sectors of healthcare, niche production, B2B services, and consumer products and retail. The process of selecting investments will consider the market growth, fragmented industries, business scalability, the attractiveness of financial and economic data, the winner culture and the M&A activity (the exit potential).
The first fund of Morphosis Capital (Fund I) was focused solely on the Romanian market, and healthcare was the most important industry, with three out of six transactions carried out. The Gross IRR (internal rate of return) was 31% in June 2024, and the Net IRR was 19.1%. The first fund had a size of EUR50 million.
Fund I invested in EMI Group, which carried out three mergers and acquisitions (M&A), DocProcess, which opened an office in France, the Dr. Leahu dental clinics, which carried out a M&A transaction and opened 8 new clinics, Cronos, which carried out two M&A transactions and opened two new clinics, Medima, with two M&A deals and 17 new clinics, and StayFit Gym, with six M&A deals and 29 new fitness centers.