The shrinking growth rates in some sectors, rising inflation and the falling RON will trigger a correction in the value of Romanian assets, believes Emma Popa-Radu, head of the Romanian office of investment fund Advent International.
"Certain sectors have been overvalued, following trends on the international markets. Some sectors will continue to grow, but at slower rates than the ones posted over the past 2-3 years. Romania will continue to be attractive to investors, but this will also depend on the correlation of evaluations to international or sector corrections," said Emma Popa-Radu.
She believes that generally the yields investment funds derive on the Romanian market have risen because of several factors that include the positive results witnessed by some, access to loans for leveraged buyouts (a tendency that gained momentum starting 2003), the high growth rates registered in some sectors, as well as political, legislative and monetary stability.
"I believe highly experienced funds that have gone through such experiences before (global slowdown and various financial crises) will be better positioned to survive and will continue to produce attractive yields," added Emma Popa-Radu.
At present, Advent has three companies in its portfolio: D?fa Deutek (paint, adhesives and mortars), Ceramica Iasi (bricks and metallic tiles) and LaborMed Pharma (generics).
"For each company we invest in we will increase production capacities to generate higher sales for existing products, launch new products and develop on export markets," added Emma Popa-Radu.
On average, Advent's investments in a company are made over a period of 4-5 years and are directed towards the development of capacities, the distribution system, export markets, the building of new production facilities and the consolidation through acquisitions in the country or reg
