The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.

Private equity: Room for more improvement

EBRD’s chief economist urges great investor participation.

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. This lack of domestic investment remains a crucial obstacle to the development of a sustainable, mature private equity market in the region, he adds. Berglof reckons one way local funds could be encouraged would be if regulatory constraints were relaxed.

Last year, the volume of finance committed to private equity in the region reached more than $1.6 billion compared with $1.4 billion in 2004. That was the first time that fund flows in the region had topped the $1 billion mark and is a stark contrast with the situation following Russia’s financial crisis in 1998. As the region continues to develop, so should its private equity market.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree