Challenging investment conditions and continued investor apathy towards central and eastern Europe is causing a shakeout in the region’s private equity market, with PineBridge Investments becoming the latest firm to face difficulties.

The firm's central and eastern European team is attempting to restructure its €522.5 million 2007-vintage second fund, PineBridge New Europe Partners II, as it has been struggling to sell its remaining portfolio companies in the fund, according to two people familiar with the matter.