Private equity: Room for more improvement

Central and eastern Europe’s private equity market needs greater participation from long-term institutional investors if it is to reach its full potential, says a senior economist.

Erik Berglof, chief economist at the European Bank for Reconstruction and Development, says that if private pension funds and insurance companies were to invest more in private equity funds the industry would be given a big boost. One concern in particular is the lack of domestic investors, he adds.

“Private equity will become more important in the region but there are very few domestic players,” he tells Euromoney.