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Private equity funds bring in half a billion euros

11.09.2008, 20:37 12

Romania attracted private equity investments worth 476 million euros in 2007, four times more than in the previous year, ranking second in Central and Eastern Europe in terms of the number of deals sealed, according to a survey conducted by the European Private Equity and Venture Capital Association - EVCA. Private equity funds invest in non-listed companies, by acquiring a majority or minority stake. The funds seek a yield above the one fetched by the capital market by selling the stake in three or five years' time. Private equity investments in Central and Eastern Europe saw a record rise, of 80% last year, to 3 billion euros, reveals the study "Central and Eastern Europe Statistics 2007", conducted by EVCA. Poland had the highest level of investment activity, with 85 transactions concluded and almost 23% of the capital allocated to the region. The local market attracted almost 16% of the Central and Eastern European investments of private equity funds, with the number of transactions climbing to 42.

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