Private Equity - Romania | Statista Market Forecast

The deal value in the Private Equity market is projected to reach US$9.00m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of 8.30% resulting in a projected total amount of US$9.75m by 2025.
The average size per deal in the Private Equity market amounts to US$1.37m in 2024.
From a global comparison perspective it is shown that the highest deal value is reached United States (US$594.00bn in 2024).
In the Private Equity market, the number of deals is expected to amount to 6.41 by 2025.

Definition:

Private equity involves partnerships that buy, manage, and eventually sell companies. These firms manage funds for institutional and accredited investors, who commit significant capital for extended periods. Private equity funds can acquire entire private or public companies or participate in buyouts with other investors, but they typically avoid holding stakes in publicly traded companies. The Private Equity market encompasses a broad range of deal types that involve acquiring equity ownership in private companies. This market typically includes leveraged buyouts (LBOs), growth capital, Carve-outs, and other forms of equity investments that target mature businesses with the potential for operational improvements and value creation. The market presented here does not include Venture Capital investments. While both Private Equity and Venture Capital involve equity stakes in companies, Venture Capital specifically focuses on high-growth potential startups, while private equity firms invest in established companies with the aim of increasing the value of these companies before selling their investment after several years.

Additional information:

The market contains the following KPIs: the deal value, the number of deals, the average deal size as well as the assets under management (AUM). Key players in this market are companies such as Blackstone, The Carlyle Group, KKR, Goldman Sachs, General Atlantic, and Warburg Pincus.

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Leveraged Buyouts (LBOs)
Growth Capital
Carve-Outs
Distressed Buyouts
Secondary Buyouts

Venture Capital
Venture Debt
Traditional bank loans
Digital capital raising

The Private Equity market in Romania has shown minimal decline in growth, influenced by factors such as cautious investor sentiment, regulatory challenges, and macroeconomic uncertainties, which have led to a more measured investment approach in the region's evolving landscape.

Customer preferences: The Private Equity market in Romania is witnessing a notable shift towards sustainable and responsible investment practices, as investors are increasingly prioritizing Environmental, Social, and Governance (ESG) criteria. This trend is influenced by a growing awareness of climate change and social responsibility among consumers and businesses alike. Additionally, younger demographics are pushing for transparency and ethical practices, prompting private equity firms to adapt their strategies to align with these evolving consumer values, ultimately driving investment towards innovative and sustainable ventures.

Trends in the market: In Romania, the Private Equity market is experiencing a significant shift towards integrating Environmental, Social, and Governance (ESG) criteria into investment decisions, driven by heightened awareness of sustainability among investors. Private equity firms are increasingly targeting innovative startups focused on green technologies and socially responsible enterprises, as these align with evolving consumer values. Additionally, regulatory pressures and a growing emphasis on ethical business practices are shaping investment strategies. This trend not only enhances the appeal of investment opportunities but also fosters a more sustainable economic landscape, influencing industry stakeholders to adapt and innovate.

Local special circumstances: In Romania, the Private Equity market is uniquely influenced by its transition to a market economy, which fosters entrepreneurial spirit and innovation. The country’s rich cultural heritage and diverse talent pool, especially in technology and engineering, create a fertile ground for startups in green tech and socially responsible sectors. Additionally, Romania's alignment with EU regulations on sustainability accelerates the adoption of ESG principles, compelling firms to prioritize ethical investments. This local context not only attracts foreign capital but also promotes a vibrant ecosystem that supports sustainable economic growth.

Underlying macroeconomic factors: The Private Equity market in Romania is significantly shaped by overarching macroeconomic factors, particularly central bank policies and interest rates. Lower interest rates enhance access to capital, making it easier for private equity firms to secure financing and invest in promising startups. Conversely, rising rates can tighten liquidity and deter investment, impacting deal flow and valuations. Furthermore, Romania’s robust economic growth and increasing foreign direct investment create a conducive environment for private equity. The alignment with EU fiscal policies also fosters a stable regulatory landscape, further enhancing investor confidence and encouraging long-term commitments to sustainable ventures.

Data coverage:

The figures are based on deal value, number of deals, the average size of each deal, and assets under management within the Private Equity market.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players, industry reports, third-party reports, and publicly available databases. In addition, we use relevant key market indicators and data from country-specific associations, such as: GDP, total investment (% of GDP), household wealth (per Adult), high income (% of population), and number of high-net-worth individuals (HNWI). This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. In this market, we use the HOLT-damped Trend method to forecast future development. The main drivers are total investment (% of GDP), household wealth (per Adult), number of high-income persons, and number of high-net-worth individuals (HNWI).

Additional notes:

The market is updated twice a year in case market dynamics change.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

In the last decades, private equity has emerged as a dominant force in global finance, reshaping industries and driving economic growth worldwide. After the peak experienced in 2021, however, private equity activity slowed down in 2022 and 2023, due to multiple factors such as inflationary headwinds, rising interest rates, geopolitical unrest and general uncertainty. With an estimated value of nearly four trillion dollars, private equity dry capital - a term commonly used in the private equity world to refer to committed, but unallocated capital - reached unprecedented heights in 2023. A high level of this capital means that private equity firms have unspent cash reserves. Among the most influential private equity firms worldwide, the Blackstone Group is the largest in terms of funds raised.