The Asociation of Private Equityand Venture Capital Funds in South-Eastern Europe (SEEPEA) announced that private equity funds (PE) active in Central and Eastern Europe (CEE) have capital under management of over EUR 4 billion allocated for investments in the region. Also, according to the SEEPEA informtion, the PE funds have invested EUR 56 million in Romania in the first nine months of 2010.
“We expect to have more flexibility from employers in evaluating their own businesses, while the economic recovery in Europe has not yet reached Romania and options for development and recovery companies have been reduced considerably in recent times”, said Irina Anghel, SEEPEA secretary general .
In 2009, CEE private equity investments reached EUR 425 million. Private equity financing in the local market in 2009 represented 0.18 percent of GDP, below the CEE countries – 0.22 percent of GDP, far from the Czech Republic, with a share of 1.017 percent of GDP. In Q4, 2009, Romania and Bulgaria have seen a spike in annual funding attracted: Romania benefited from private equity investments of approximately EUR 120 million, while Bulgaria attracted EUR 178 million.
In late 2009, private capital injections companies Romania amounted to EUR 220 million and EUR 184 million in Bulgaria. In the first three quarters of 2010, PE grants in Romania accounted for about 55 percent of the investments of the same period last year, when they totaled EUR 101 million.
The main sectors that have attracted private investment equity in Romania were: medical services and pharmaceutical industries (among grants, with about EUR 22 million), the retail and consumer goods, construction, energy, communications and transport. In Bulgaria, the capital allocated to companies this year represents 26 percent of investments on the same period in 2009.