Private Equity Market in Romania. Why Is its Infancy so Long?

Abstract

The aim of the paper is to analyze the evolution of the Private equity market in Romania in theaftermath of the latest global financial crisis. Using data provided by European Private Equity &Venture Capital Association (EVCA), we found that the development of the Romanian privateequity market has been affected by the low size and liquidity of the Romanian stock market, thehigh level of taxation, and the consequences of the latest global financial crisis. We consider thatgovernment support is needed in order to create a functional private equity in Romania. Ourfindings are useful for policy makers, academics, and practitioners.

Keywords

• private equity
• venture capital
• Romania
• emerging markets
• public policy