Direct investment market (private capital – PE) and venture capital (venture capital – VC) in Romania is much less developed than in Central and Eastern Europe (CEE) and the entire European fundraising industry (“fundraising“), with a total of €128.2 million raised between 2018 and 2021, compared to €7,288 million at the EEC level, according to the Romanian Private Equity Association (ROPEA) report for 2021 and the first half of 2022, conducted by ROPEA and Deloitte Romania based on data provided by Invest Europe, one of the largest global PE and VC associations, and publicly available information.

The low volume of the local market is mainly explained by the lack of diversification of financiers, taking into account the fact that the Romanian market is highly dependent on public sources, including international financial institutions such as the European Investment Fund (EIF) or the European Investment Fund Bank for Reconstruction and Development (EBRD). , which accounts for 61% of all funds raised in the period from 2018 to 2021, followed by family businesses (family offices) and individuals (34%), as well as other types of investors such as pension funds, banks and other asset managers and sovereign wealth funds, which represent only 6% of the total amount raised. The landscape in CEE is more diverse, with public sources accounting for 39% of all funds raised in the region between 2018 and 2021, followed by corporate investors, pension funds, banks and other asset managers and sovereign wealth funds (38%). family offices and individuals (13%), as well as fund funds – fund funds (10%).

On the other hand, according to the report, the local economy offers attractive opportunities for local and regional players, but for our country to reach its potential in this area, it needs to develop a stronger base of local investors. The current context, marked by the recent launch of the Recovery Equity Fund, a program under the National Recovery and Resilience Program that provides €400 million to fund managers, is optimal for development, the report says, but the distribution of funds depends on the availability of co-investors, including local capital providers , such as pension funds, corporations or individuals.

“This comprehensive report, which is an excellent source of information for professional investors, entrepreneurs and authorities, confirms ROPEA’s previous assessments of the state of the local profile market, which emphasize that we need significant development to reach a level comparable to the region and to Europe. We will continue to promote among local entrepreneurs and the Romanian authorities the role of financial investors, who can significantly contribute to job creation and increase GDP through the financial and human capital they invest in the business, through marketing expertise and organizational capabilities. Sectors such as IT, technology, health services, green and social impact have seen significant growth and provide the prerequisites for clear competitive advantages for our economy and the investors who choose to support them,” he said. Horiya Manda, President of the ROPEA Board of Directors.

“The Romanian market has great potential for business development that can become important players at the local and regional levels, and the private capital ecosystem in Central and Eastern Europe is in an ideal situation to support the transition of small and medium-sized local players. to the next level. In addition, the increasingly important role of environmental, social and governance (ESG) factors in investment decision-making opens an opportunity for both investors and beneficiaries. But for the local market to grow, there is a need for diversification of funding sources, a need that was also highlighted by relevant industry players we interviewed during the documentation phase for this report,” he said. Radu Dumitrescu, partner-coordinator of Deloitte Romania’s financial consulting department.

The full report is available on the ROPEA website.

About ROPEA

ROPEA is an independent non-profit organization that promotes the interests of the Romanian private equity and venture capital industry. We work together to provide capital, unlock potential, grow businesses and deliver enhanced returns for investors. ROPEA was originally founded in 2005 as SEEPEA – the South East European Direct Investment Association – with a regional role to educate and promote a better understanding of the importance of direct investment to the economies of South East Europe, to support entrepreneurship, innovation and development.

With the growing importance of the direct and venture investment sector in Southeast European countries, the association began to focus on the national territory, starting in 2019, and represents the interests of the Romanian direct and venture investment industry. ROPEA’s mission is to unite the private equity and venture capital investment community, promote the development of the private equity and venture capital investment industry, and represent their interests. We also aim to improve the efficiency of the sector by raising awareness and increasing access to it, demonstrating the positive role of our industry in the Romanian economy.

To learn more about ROPEA, go to https://ropea.ro/about-ropea/.

About Deloitte

Deloitte provides global audit, tax and legal advisory, consulting, financial advisory and risk management services to approximately 90% of the Fortune Global 500® companies and thousands of private sector companies. The firm’s experts help deliver measurable and lasting results that help build confidence in capital markets, enabling companies to transform, thrive and pave the way for a stronger economy, a fairer society and a sustainable world. With more than 175 years of history, Deloitte covers more than 150 countries and territories. Its goal is to create a visible impact on society with the help of approximately 415,000 professionals worldwide.

Deloitte Romania is one of the largest professional firms in our country and offers in cooperation with Reff & Asociații | Deloitte Legal, audit services, tax consulting, legal services, consulting and risk management, financial consulting, service solutions and technology consulting, and other related services provided by more than 3,000 professionals.

To learn more about the global network of member firms, visit www.deloitte.com/ro/despre.