TLDR:
- Private equity-backed companies in Romania saw a 7.1% increase in job creation in 2022.
- The Romanian private equity and venture capital sector showed potential for growth despite challenges.
The Romanian Private Equity Association (ROPEA) and Deloitte Romania collaborated on a report highlighting the performance of the private equity and venture capital market in Romania in 2022 and 2023. Private equity-backed companies experienced a 7.1% increase in job creation, outperforming the overall economy’s 2.3% increase. This sector also saw a €5.2 billion turnover increase during the period of 2019-2022. Despite facing challenges like limited local capital, Romania’s PE and VC sector showed potential for development and attracted international investors.
The report emphasized the positive impact of financial investors in the Romanian economy, contributing to revenue growth and job creation through strategic involvement in businesses. Additionally, the sector is expected to benefit from the €400 million Recovery Equity Fund managed by the European Investment Fund.
During the period of 2022 and 2023, private equity investment fluctuated, while venture capital investments, particularly in ICT start-ups, saw a steep increase. The number of PE and VC deals in Romania fell by 16% in 2023, with interest rates impacting deals reliant on bank financing. Despite these challenges, the sector is expected to attract more diversified financing sources in the future.
The report also highlighted the importance of ESG criteria in the sector, aligning with global trends towards sustainable and responsible investing. The future outlook for the Romanian PE and VC market includes a projected increase in fundraising activity, with a focus on allocating capital to fund managers investing in SMEs, mid-caps, and infrastructure projects.
