Although it had announced a private equity investment fund, it seems that the state will opt for a non-banking financial institution (NBFI), in which it will be majority shareholder. Investment bankers say that such a vehicle can perform well only if the state is a passive minority investor and the fund is managed by a specialized company.
The future investment fund, of which the state will own a 45 percent share package, and remaining shareholders will not be able to own more than 20 percent, could join the EVCA, according to initial talks between the Romanian authorities and the European association.
“The idea of a private equity fund sponsored by the state can be very good, but it can also be a relatively certain way of generating corruption,” said Florin Dolea, General Manager of Pioneer Asset Management. However, if the administrator is a private company specializing in private equity, “it could attract additional private resources, as private investors can convince themselves that the decision-making process is completely isolated from political influences,” according to Mihai Sfintescu, Investment Director of 3TS Capital Partners.
