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Private equity funds, optimistic about prospects of Romania and South-East Europe

Private equity funds, investing in unlisted companies, are optimistic about the prospects of Romania and South-East Europe and believe the economies there will continue to grow, albeit at a smaller pace, reveal findings of a poll conducted by the South-East Europe Private Equity Association (SEEPEA) among its members.

According to the poll, which findings were presented on Wednesday in Bucharest at the regional conference 'Fueling Healthy Growth,' private equity funds have liquidity and they are not pressed to head for exits and, at the same time, they expect entrepreneurs to be more open to these funds becoming investors, given the shortage of financing solutions.

The poll also indicates that 14.3 percent of the private equity funds expect the Romanian economy to grow in the following 12 months at the same high pace, while 85.7 percent of them expect the developments to be worse because of the ongoing financial crisis or independent of it.

About the world markets, 85.7 percent of the respondents do not expect them to bounce back earlier than 12 months, while 14.3 percent of them expect the recovery to happen in 6-12 months.

As many as 57.1 percent of the respondents believe the volume of their own new investments in Romania will be the same in the following 12 months, 14.3 percent believe they will rise, while 28.6 percent believe it will decline.

About the potential of the local capital market for listing Romanian companies, the opinion was unanimously negative, with 85.7 percent of them saying the potential is very small and 14.3 percent say it is small.

As many as 85.7 percent of the responding private equity funds say they will invest more in Romania in the following 12 months if the evaluation of Romanian companies diminishes.

More then half of them - 57.1 percent - say they do not consider exits in the period immediately ahead; 42.9 percent say they will resort to exits for some of their investments and postpone such decision for other investments.

Asked about the factors precluding a more rapid development in Romanian of private equity funds, the respondents mentioned the reticence of entrepreneurs in accepting investors (60 percent); a small number of companies interested in such funds (20 percent); the existing legal framework and law enforcement (10 percent); high evaluations (10 percent).

 

Sursa: http://www.rompress.ro

Tags: percent private funds equity expect months romania about south europe

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