As Romania navigates an increasingly complex economic landscape, Rudi Vizental, CEO of ROCA Investments, shares his insights on the private equity sector’s evolution and the key factors shaping business in 2025.

He highlights the growing importance of debt financing and secondary transactions as alternatives to traditional funding, explaining that "debt financing is stepping in to compensate for banks’ gradual withdrawal from traditional lending, driven by tighter regulations and rising capital costs."

Vizental also underscores the need for Romania to improve its investment climate by aligning legislation with international standards and fostering local institutional investor participation. Without this, he warns, "Romania will not attract substantial international interest from major private equity players." Looking ahead, he believes private equity firms must balance strategic adaptability with disciplined execution, focusing on liquidity, risk management, and digital transformation.

Beyond the private equity sector, Vizental identifies key economic inflection points for Romania, including higher taxes, political uncertainty, and a slowdown in traditional financing. However, he also sees potential for growth, particularly in the context of Ukraine’s reconstruction, which he describes as a major economic opportunity for Romanian businesses in construction, logistics, and services. His advice for entrepreneurs? Stay agile, invest in operational efficiency, and look beyond Romania to emerging markets that offer long-term expansion opportunities.

Read the full interview below:

What do you think will be the evolution of the private equity market in 2025, both locally and regionally, given today’s increasingly complex economic environment?

Rudi Vizental: At the regional level, there is growing pressure on liquidity. Following various changes in recent years—both in regulations and in economic trends—two types of products have gained popularity and will continue to grow: debt financing and secondaries transactions. The former is stepping in to compensate for banks’ gradual withdrawal from traditional lending, driven by tighter regulations and rising capital costs. The latter offers investors solutions to rebalance their portfolios by facilitating faster exits, often at a discount.

Certainly, the private equity market will keep expanding across the region, including in Romania, yet not quickly enough to bridge the gap with more established economies in this sector.

What should local policymakers do to make Romania more attractive for private equity activity?

Rudi Vizental: Romania is still a very early-stage market, so private equity’s development here largely depends on internal measures. It is essential to align our legislation with international standards, to encourage local institutional investors to allocate capital to this sector, and to find mechanisms for directing the funds available via the National Recovery and Resilience Plan (PNRR) toward private equity—so that these resources can be channeled into local companies with potential.

As long as we fail to demonstrate real local confidence and tangible support for this industry, Romania will not attract substantial international interest from major private equity players.

How do you think private equity players will adapt to the new economic context?

Rudi Vizental: Private equity funds are structured around investment cycles. Although, in the short term, some funds might adopt more defensive strategies or more creative approaches to navigate this climate, their core strategy invariably looks to the medium and long term. The biggest opportunities typically emerge during economic downturns, and funds that remain disciplined in their investment approach are usually the ones that come out on top in such periods.

With what mindset will you begin 2025?

Rudi Vizental: In 2025, we will approach investments and portfolio management with strategic adaptability and disciplined execution. This year requires pragmatism and agility, given the volatility of the markets and ongoing fiscal and economic shifts.

We will be more selective in capital allocation, with a strong focus on liquidity and portfolio optimization, including through private debt and secondaries deals. At the same time, we remain open to growth prospects in the region, particularly in the context of Ukraine’s reconstruction, which may spur new waves of investment and strategic partnerships.

We are preparing both for challenges and for pivotal moments that could provide a competitive edge. We will emphasize risk management, digitalization—staying connected to real-time data—operational efficiency, and innovation. Our decisions will aim to foster sustainable, long-term growth.

What will be Romania’s main inflection points in 2025?

Rudi Vizental: In 2025, Romania will face several inflection points that shape both its economy and its attractiveness to investors. First, we anticipate a political environment more complex than at any time in the last two decades, likely putting many investment decisions on hold and possibly prompting capital outflows from the country. This compounds the region’s geopolitical challenges, which have already caused institutional investors to be more cautious in recent years.

Budget imbalances will threaten fiscal stability, while higher taxes will deter investment and undermine the competitiveness of local businesses.

Another key factor is liquidity access, given that traditional financing is becoming harder to secure. Alternative instruments—such as private debt and European funds—will therefore be crucial for supporting company growth and funding new projects.

Additionally, as previously noted, Ukraine’s reconstruction could become a major economic opportunity for Romania, especially in fields like construction, logistics, and services. If a peace agreement is reached, Romanian businesses could benefit from increased demand for their expertise and resources, thus strengthening the country’s economic position in the region.

What are your expectations for the local business environment in 2025?

Rudi Vizental: In 2025, the Romanian business landscape will experience both significant challenges and noteworthy opportunities. Higher taxes will squeeze profit margins and reduce companies’ ability to reinvest, while more restrictive access to finance will slow the pace of investments. Furthermore, the labor shortage will remain a pressing issue.

On the other hand, Romanian companies have the chance to accelerate their international expansion, especially in emerging markets. Investments in operational efficiency and digitalization—particularly rapid adoption of AI-based solutions—will become top priorities. Meanwhile, the growing private equity phenomenon will bring not only fresh capital but also expertise in process optimization and business scaling.

Do you expect entrepreneurs to be as optimistic as they were in 2024?

Rudi Vizental: Optimism is practically part of an entrepreneur’s job description—thinking positively and seeing opportunities before spotting risks. Being optimistic does not mean denying a looming recession, but rather believing that you can ride it out successfully and emerge stronger.

What advice would you give entrepreneurs for 2025?

Rudi Vizental: We need to acknowledge that the past, present, and future do not lie on a simple linear axis. It’s an increasingly complex graph with multiple inflection points, disruptive factors, and permanent shifts in economic realities. We are frequently caught off-guard by unforeseen events, sometimes calling them “black swans” even when they may not fully merit that term.

In 2025, we must prepare for volatile conditions and challenging elections with major consequences. Unfortunately, we will inevitably face higher taxes, which will drive consumer spending down. Therefore, thinking long-term and focusing on expanding into emerging regional markets is crucial. Those who adapt quickly will gain a clear competitive advantage.

*This interview was edited by Romania Insider for ROCA Investments.