More than half of the private equity funds active in Romania expect an increase in the number of mergers and acquisitions in the local sector in 2025 compared to the previous year, according to the Roland Berger study “Private Equity Industry Outlook for 2025.” 

At the same time, more than 40% of the private equity funds active locally consider that the investment opportunities available in 2025 will be more attractive than those in 2024. 

The rise takes place in a context of macroeconomic caution. If in 2024, 73% of respondents anticipated economic growth, in 2025 only 24% still share this view. The majority, or 76%, now expect stagnation or even a slight economic decline.

The local outlook is slightly more reserved than in Central and Eastern Europe, as well as Western Europe, where 64% and 40% of respondents, respectively, anticipate economic growth this year.

In Western Europe, where private equity fund activity has recorded a constant decline over the last four years, 90% of study participants also anticipate an increase in the number of transactions in 2025. Furthermore, over 70% of respondents expect more attractive investment opportunities than in previous years. The most significant growth is 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, and 11 exits, an increase compared to the 7 recorded the previous year. Including add-on acquisitions, Romania recorded in 2024 the second highest number of PE transactions in Central and Eastern Europe. It also had 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,” says Szabolcs Nemes, Managing Partner, Roland Berger Romania. 

“Capital raising was one of the main priorities in 2024, with local and regional funds managing to attract over EUR 2 billion. In this context, it is natural that, in 2025, the focus will shift to making new investments and developing portfolio companies, with complementary acquisitions (add-ons) among the strategic priorities of the funds this year,” the analyst adds. 

Meanwhile, in Western Europe, nearly 60% of funds intend to carry out exits in 2025, due to increasing pressure from investors, after a period in which many such transactions were postponed. However, in the short term, uncertainties related to tariffs could continue to delay the completion of some exits. 

“In 2025, the private equity funds active in Romania will focus particularly on the IT and Healthcare Services industries. The Consumer Goods and Retail sector, the most dynamic in 2024, with the most acquisitions and exits on the local market, drops to third place in the ranking of local fund preferences this year,” mentions Alina Florean, Senior Manager, Roland Berger Romania. 

At the end of 2024, the portfolio of private equity funds active in Romania included about 80 companies, with a combined turnover of approximately 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. 

In addition to complementary acquisitions (add-ons), which will represent an important driver for the private equity industry across Europe, local and regional funds will place special emphasis on improving the operational efficiency of portfolio companies. In this context, the majority of respondents intend to introduce cost reduction measures, optimize working capital, and increase investment efficiency, a process in which AI will have a major role.

radu@romania-insider.com

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