Romania ponders allowing pension funds to invest in PE and venture capital funds

The Romanian government's economic recovery package and the initiatives of the Ministry of Finance, the Financial Supervisory Authority (ASF), and the Investment and Development Bank (IDB) envisage a two-step mechanism for allowing the privately managed pension funds to invest in private equity (PE) and venture capital funds, according to Cursdeguvernare.ro.

The measure is advocated by the Romanian Private Investment Association, but the sole supervision provided by the state may prompt significant perceived risks until the contributors’ associations are given at least a consultative role in the pension funds’ management structure. At this moment, Pillar II pension funds are allowed to invest up to 1% of their portfolios in PE funds – but have actually invested only 0.2%.