Private equity funds invested almost 200 mln euros in Romania the first six months of the year, 25% less against the same time last year. Their main areas of interest were constructions and other related sectors, according to the statistics of South Eastern Europe's Private Equity Association (SEEPEA), Ziarul Financiar reported.

As a result, Romania replaced Poland, which was the most important market in Central and Eastern Europe, on the map of the private equity investments. Poland attracted 80 million euros in investments from private equity funds in the first half of the year, while in Bulgaria the funds invested approximately 50 million euros, SEEPEA statistics show.

Romania was the star of the private equity funds in the first half. Even though the volume of investments attracted was lower than last year, the Romanian private equity market is healthy despite the financial crisis", Robert Luke, SEEPEA chairman said.

The reduction of private equity investments on the domestic market comes after a 400% increase, which reached a total volume of 476 mln euros in 2007.

A poll conducted among members of SEEPEA found that the main obstacles hindering the development of private equity investments on the Romanian market are the reluctance of Romanian entrepreneurs to accept an investor and the low number of interesting companies on the domestic market.

Although Romanian companies were deemed expensive, and the current financial crisis will bring up the issue of cash, private equity funds are willing to invest more on the local market next year than they did in the previous year, according to a SEEPEA poll. The main reason is the reduction in the price to buy into Romanian companies.

The financial crisis will make companies significantly cheaper, according to private equity funds' representatives. This decline in price will be an opportunity to buy funds and a challenge for those seeking to exit.