PE investments in the construction sector reached EUR 55 mln in 2023 in CEE, an increase of 45% vs. 2022. The importance of capital for Romanian companies
Private equity (PE) fund investments in Central and Eastern Europe (CEE) reached a total volume of EUR 1.71 billion in 2023, while Romania ranked 4th at the CEE level. - In 2023, the total investments made by PE funds in the construction…
- Private equity (PE) fund investments in Central and Eastern Europe (CEE) reached a total volume of EUR 1.71 billion in 2023, while Romania ranked 4th at the CEE level.
- In 2023, the total investments made by PE funds in the construction sector in the CEE reached a total of EUR 55 million, representing 3.2% of the total PE investments in the region.
- The investments of these funds in the agricultural sector decreased by 26%, from EUR 7.7 million in 2022 to EUR 5.7 million, remaining at 0.3% of the total investments in the region.
Private equity investment funds reaffirm their role in supporting and developing strategic sectors, especially in periods of economic uncertainty. In 2023, although private equity (PE) investments in Central and Eastern Europe (CEE) had a downward trend, reaching a total volume of EUR 1.71 billion, from EUR 2.1 billion in 2022, Romania registered a significant increase, placing us in 4th place at CEE level, with a total of EUR 130 million in 2023, compared to EUR 80 million in the previous year. Also, according to the types of investments made at the CEE level, Romania is in a leading position in the Buyout segment, occupying the 3rd place, with EUR 76 million, after the Czech Republic and Poland.
The 2023 PE investment landscape reflected global and regional economic trends, as well as the need to support innovation and sustainable development. According to the Invest Europe* study, out of the total investments of EUR 1.71 billion, the sectors that attracted the highest amounts of PE investments were business products and services (29%), IT&C (25.3%), biotechnology and health (14.5%) and consumer goods and services (13.5%). Thus, these four sectors collectively represented 82% of the total value of PE investments in CEE, while key sectors such as agriculture or construction materials did not represent a major interest for private equity investors. The last two sectors are essential for Romania's economic development and, at the same time, represent priority areas for ROCA Investments' investments.
With six years of activity in the local PE area, ROCA Investments has a deep understanding of the market dynamics and the specific needs of the key agricultural and industrial sectors, through the two strategic pillars through which the company invests in the Romanian economy: ROCA Industry and ROCA Agri RDF.
"We invest in strategic sectors by taking over and transforming entrepreneurial companies, with the aim of offering them growth prospects at European level in the sectors in which they operate, applying our PE know-how, through the two specialized holding companies. ROCA Investments being an evergreen fund, of the buy & build type, with a specific majority shareholder, with already visible results especially in the construction materials industry, we want to consolidate and own companies in the long term, to transform them into market leaders," said
