PE funds hope for at least 10 deals by year-end

The value of private equity (PE) investments in Romania dropped 30 percent in this year's first quarter, compared to the same period in 2007, down to €195.2 million, according to data provided by the South Eastern Europe's Private Equity Association (SEEPEA), founded in August 2005 by 3 fund management companies. This trend will, at best, be maintained throughout 2008, with investment levels dropping to €300-350 mln from the €475 mln registered in 2007, according to Robert Luke, SEEPEA's President and General Manager of GED Capital Development.

"The level of investments can be explained by the insistence of entrepreneurs not to reconsider the evaluations of their own companies in Real terms," Luke said. However, at least 10 transactions with a total value of some €150 million are to be made by year-end, according to estimates by certain administrators of PE funds, who were present yesterday at the annual SEEPEA conference.

These administrators further indicated that the investment potential of Romanian funds has not been affected by the international financial crisis, because these funds have liquidities and are less dependent on bank loans.

Business Standard