Private equity market developments in central and Eastern Europe

Abstract

This paper discusses the current state of the private equity industry in terms of size of investment, funds raised, disinvestment mechanisms practiced and their trends in the CEE region in comparison with other European countries. The low level and limited success in developing venture capital industry in Europe, particularly in the Central and Eastern European countries raises concerns, given the numerous evidences, which show the positive role of venture capital investment in supporting innovation. We believe that the lack of supply of venture capital is one of the hampering factors to demand of funds came from entrepreneurs in the CEE states, including in Romania, which we show to be one of the countries with a systemic lack of venture capital funding in early-stages of business.

Keywords

• venture capital
• private equity
• Central and Eastern Europe (CEE)
• Romania