The partnership between IRE AIFM HUB in Luxembourg and Impetum Management (ROCA FP), designated as the preferred candidate by the Board of Representatives, presented today the long-term strategy for Fondul Proprietatea (the Fund).

Andrei Cionca, the permanent representative of ROCA FP, claims that the Fund needs a change of strategy to remain relevant.

“The current liquidation strategy has served its purpose, but the economic context now requires a change, and recent results confirm this. Dividends collected by the Fund have decreased from over 1.2 billion lei in 2020 to just 145 million lei in 2024, with a further decrease estimated for 2025. At the same time, the level of dividends distributed to shareholders has also significantly decreased, from 1.1 billion lei in 2021 to 212 million lei in 2024. These developments confirm the need for a new strategic direction, aimed at ensuring both attractive returns and the Fund’s relevance in the long term,” explained Andrei Cionca.

The selected team proposes a long-term strategy, built to reposition Fondul Proprietatea as an investment engine and catalyst for the Romanian economy.

“Fondul Proprietatea can become an instrument through which Romania can catch up with other capital markets in the region and consolidate its position as a major player in Central and Eastern Europe. Through direct investments and modern private equity mechanisms, the Fund has the potential to bring in capital, know-how and competitive long-term returns. The selection process has already taken a significant amount of time and resources, and any additional delay in making a final decision risks eroding the Fund’s value to investors. It is essential that the Fund can quickly implement a solid strategy,” Andrei Cionca added.

The strategy is built on two main directions:

• Direct investments in Romanian and regional companies in strategic sectors – technology, healthcare, renewable energy and manufacturing industries –, with the aim of generating added value, dividends for shareholders and jobs.
• A Fund of Funds (FoF) component, through which the Fund’s capital will support the development of local private equity and venture capital funds, contributing to the maturation of the investment ecosystem in Romania and facilitating entrepreneurs’ access to financial resources and expertise.

“Fondul Proprietatea has the potential to become a driving force of the Romanian economy, through direct and indirect investments in strategic sectors, and an attractive option for new categories of investors. The team is ready to assume this active and responsible role, in partnership with shareholders, to build a solid and sustainable strategy. In the long term, the capital invested in private equity has multiplied almost three times that invested in public markets, which confirms the relevance of this direction for the Fund”, emphasized Andrei Cionca.

The partnership between IRE AIFM HUB, an authorized administrator in Luxembourg, and Impetum Management, a specialized investment consultancy company in the Romanian market (ROCA FP) is the candidate designated by the Board of Representatives after a rigorous selection process initiated by Fondul Proprietatea in 2023, for the appointment of a new administrator.

The assets managed by ROCA FP amount to approximately 2 billion euros, almost five times more than the net asset value of Fondul Proprietatea.