Private Equity Boom Predicted in Romania: Half of Investment Firms Anticipate More Mergers and Acquisitions in 2025
Rewritten Article:
Romania's private equity sector is gearing up for a surge in mergers and acquisitions (M&A) in 2025, according to a Roland Berger study. In fact, more than half of the active funds in the country anticipate an increase in such transactions compared to the previous year. Over 40% of these funds also believe the investment opportunities of 2025 will be more attractive than those of 2024.
This upward trend occurs in a cautious macroeconomic climate. Unlike 2024, when 73% of respondents expected economic growth, only 24% have retained this optimism for 2025. The majority (76%) now expect stagnation or even a slight economic decline. Romania's outlook is slightly more reserved than Central and Eastern Europe and Western Europe, where 64% and 40% of respondents, respectively, predict economic growth this year.
Interestingly, Western Europe, among other regions, is experiencing a constant decline in private equity fund activity over the last four years. Yet, in 2025, an overwhelming 90% of study participants anticipate an increase in transactions. Furthermore, over 70% expect more attractive investment opportunities than in previous years, with the most significant growth expected in the Nordic countries, followed by Italy, Spain, and Portugal.
In 2024, private equity funds in Romania completed 9 acquisitions, compared to 13 in 2023, representing a slight decrease. However, the number of exits increased, from 7 in 2023 to 11 in 2024. Including add-on acquisitions, Romania recorded the second highest number of PE transactions in Central and Eastern Europe in 2024. It also saw one of the highest annual increases in the number of transactions in CEE, alongside Slovakia and Hungary, although the latter two started from a lower level.
For 2025, the focus is expected to shift from capital raising to making new investments and developing portfolio companies. Local and regional funds will prioritize complementary acquisitions (add-ons) and improving the operational efficiency of portfolio companies, with cost reduction measures, optimizing working capital, and increasing investment efficiency among their primary goals. Artificial Intelligence is anticipated to play a significant role in achieving these objectives.
The private equity funds active in Romania are expected to pay particular attention to the IT and Healthcare Services industries in 2025. The Consumer Goods and Retail sector, which was the most dynamic in 2024, drops to third place in the ranking of local fund preferences this year.
By the end of 2024, the portfolio of private equity funds active in Romania included approximately 80 companies, with a combined turnover of around EUR 2.5 billion. Portfolio activity is concentrated, with 75% of the turnover coming from three key sectors: Healthcare Services, Energy, Utilities and Recycling, and Consumer Goods and Retail.
This article was adapted from Romania Insider. Click here to read the original article.
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Enrichment Data:
- Romania's M&A market in 2025 shows signs of growth. The first quarter saw a 25% decline in deal volume and a 29% decline in value compared to Q4 2024, primarily due to a slow January and a high number of undisclosed deal values.
- Key deals completed in Q1 2025 include CTP's $280 million acquisition of P3 Group’s logistics portfolio and Solida Capital's $31.7 million purchase of Victoria Center Office Building.
- While over half of the local private equity funds expect increased activity in 2025, the focus is on strategic sectors such as Energy, Tech & IT, Infrastructure & Logistics, and Food & Retail.
- The government's recent changes to the FDI regime (Law 231/2024) enhance enforcement, and the implementation of a Digital Trade Register simplifies due diligence, although practical challenges persist.
- The European Union's support for energy independence and renewable projects, the resilience of the consumer market, and consolidation trends in the food and retail sectors create opportunities for strategic investments.
- Alina may find that the private equity sector in Romania, particularly in the IT and Healthcare Services industries, will witness an increase in mergers and acquisitions (M&A) in 2025, as more than half of the active funds anticipate a rise in such transactions compared to the previous year.
- As Romania's macroeconomic climate is cautious in 2025, with 76% of respondents expecting stagnation or a slight economic decline, Alina's preferences for investments may shift from capital raising to making new investments and developing portfolio companies, with local and regional funds prioritizing complementary acquisitions and improving operational efficiency.
- In her financial planning for 2025, Alina should be aware that Romania's M&A market is showing signs of growth, with the number of acquisitions expected to increase, despite a slight decline in volume and value in the first quarter compared to Q4 2024.
- If Alina is interested in the business sector, she might find it noteworthy that the private equity funds active in Romania, in addition to the IT and Healthcare Services industries, are also keeping an eye on strategic sectors such as Energy, Tech & IT, Infrastructure & Logistics, and Food & Retail for potential acquisitions in 2025.
