THE SOCIAL IMPACT OF PRIVATE EQUITY IN ROMANIA

In this paper, we address the attractiveness and the economic impact of the private equity industry in Romania, since this industry is considered to be an alternative source of financing for companies covered by investment funds. Using data from two sources, we have been analyzed both economic and social impact of the private equity involvement beginning with the entrance of the fund, the investment period and after the funds divestment. This analysis has shown that private equity funds involvement in the case of Sicomed – Zentiva is a particular case that combates the global consideration on the social impact in the economy. However, the findings and the results of this research cannot be generalized to the entire economy. On the other hand, this study presents the notable aspects that have to be considered when the companies are willing to be restructurated through the involvement of a private equity fund.private equity, involvement, economic and social implications, investment cycle, divestment

PROMOTING PRIVATE EQUITY FUNDS

The recently development of the capital market intensified the investors attraction toward profit opportunities. The involvement on the capital market has become a widely used activity among all investors regardless their financial power. This has led to diversifying of the capital market, and also to a specialization and hybridization of the financial instruments traded. Whereas, investment funds are considered intermediaries between investors and investees, they can be promoted in relation with their funding and investment activities involving the investors and certain target companies (also known as portfolio companies or investee companies).In addition to the traditional ways of promoting investment funds (i.e. direct selling, printed publications, advertisements and straplines, public relations actions) can be identified other particular methods in promoting their activity (fund raising, investing and financing) by using business angels and netpreneurs. Therefore, this paper presents the importance of promoting investment funds in relation to all the participants involved.private equity, investmen funds,promoting,business angels,netpreneurs

INVESTMENT FUNDS IN RELATION WITH SPONSORS, INVESTORS AND PORTFOLIO COMPANIES

The paper presents a briefly description of the main relations that can be encountered in the functionality of the investment fund with its participants – fund & sponsors, fund & investors, fund & portfolio companies. These three perspectives allow identifying the key role of the investment funds due to their activity objective. Maintaining a permanent concern to the market they operate on and to the preferences of investors, the investment company can obtain a solid competitive advantage and a strong image on the market, and nevertheless making the activity more effective.investment fund, sponsors, investors, portfolio companies