Survey: Increase in private equity transactions expected in Romania in 2024

The investment funds active in Romania are more optimistic about the evolution of the local market in 2024 compared to the previous year, according to Roland Berger’s Private Equity Outlook 2024. More than 70% of the respondents in the survey anticipate an increase in the number of transactions made by investment funds in Romania, after 2023 saw 20 transactions, 13 acquisitions and seven exits.

Close to 2,200 industry representatives at the European level were asked to participate in the survey. In Romania, more than 80% of the funds active in the local market took part in the survey, while in CEE, more than 50% did.

The outlook on the 2024 macroeconomic climate in the private equity industry varies according to the region. The report showed that 73% of the respondents in Romania expect to see economic growth this year, while in the CEE, 63% share this expectation. In Western Europe, 33% of the respondents expect to see economic growth this year, with more optimistic expectations in France, the UK, and the Northern countries, while experts in Germany, Portugal, and Spain are more cautious.

Still, private equity professionals are confident in the evolution of the market this year and anticipate an increase in the number of transactions made by investment funds this year. This is a marked change compared to the 2023 sentiment, especially in Western and Central and Eastern Europe, the report notes.

In Romania, the share of funds anticipating an increase in the number of transactions increased from 50% in 2023 to 70% in 2024.

The availability of attractive targets and the potential acquisition price will impact the number of transactions made by private equity funds in Romania this year, according to the survey participants. Meanwhile, the macroeconomic context and consumer trust are expected to impact the dynamic of private equity transactions in CEE, while the availability of debt financing will be more relevant in Western Europe.

“We are glad to see an increase in optimism about the private equity market in Romania. Two-thirds of the professionals in the industry expect the targets available in 2024 to be more attractive than last year, and implicitly, the number of transactions carried out this year will be higher. This optimism is similar at the European level. The highest increase in optimism levels is recorded in Western Europe, where the market of mergers and acquisitions, including those by private equity funds, was strongly impacted last year,” Szabolcs Nemes, Managing Partner, Roland Berger Romania, explained.