Gryphon’s target countries offer highly attractive opportunities to entrepreneurs and investors. Economic growth alone means that companies can grow faster than their peers in developed markets. Other compelling dynamics underpin the emerging markets advantage.

• Demographics: large populations and thus large potential markets. Exits through M&A and maximum upside potential are more likely in the bigger CEEMEA countries.
• Concept transmission: successful business models in developed markets can be transferred into emerging territories with sufficient critical mass.
• Structural stability: political institutions are becoming more stable; perception of risk reduction by capital markets.
• Market inefficiency: fewer private equity providers are looking exclusively at development capital opportunities. This leads to less competition for deals and more attractive valuations in that subsegment. Even taking into account all private equity funding, when expressed as a percentage of GDP, investment in Poland - a relatively sophisticated market - is still just a fifth of that of Europe’s (0.12% compared with 0.55%).