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Sweden’s East Capital invests over $250 mln in Romania

Deals

Investment funds managed by Sweden’s East Capital company reached a portfolio of approximately $250 million (€181 million) on the domestic capital market in the H1 of the year, accounting for 3.9% of the overall $6.4 billion (€4.7 billion) assets.

The main domestic investments of East Capital Eastern Fund and East Capital Balkan Fund were in Petrom, Impact, and Erste stock and stakes of up to 1% in the five financial investment companies (SIFs). At the end of July, one of the funds managed by East Capital purchased a stake of around 5% in THR Marea Neagra company for 16.64 million lei ($7.31 million, €5.32 million).

East Capital also holds 5.01% in Impact Bucuresti company. An independent investment fund manager, East Capital has more than 450,000 customers, of whom 25,000 are direct ones. Referring to Romanian investors in funds managed by East Capital, Karine Hirn managing director of East Capital, stated their number is relatively low. “ (...) Nevertheless, we believe the Romanian market is highly interesting in terms of size and potential, so that we will become more active in the future,” stated Hirn. According to the representatives of the Swedish company, East Capital will boost its investments in Romania provided that new companies and the Property Fund are floated on the Stock Exchange. The low liquidity and the concentration of market capitalization are the main factors making foreign investment funds shun the domestic capital market. (zf.ro)

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