In 2025, Romania’s flagship investment fund Fondul Proprietatea (FP) is undergoing one of the most important transformations in its two-decade history. After years of gradual asset sales and consistent dividend payouts, the fund is preparing to pivot toward a growth-focused model that could redefine its long-term role in the Romanian economy. The decisive step will be a shareholder vote on 29 September 2025, where the transfer of management to a consortium formed by IRE AIFM HUB (Luxembourg) and Impetum Management (ROCA FP, Romania) is on the agenda.
Why Change Is Necessary
For much of the past decade, FP’s strategy was based on disposing of assets and rewarding shareholders with large dividends. Initially, this approach was highly effective. In 2020, the fund distributed more than RON 1.2 billion (€240 million) in dividends, reflecting strong asset sales and solid cash flows. However, by 2024, the payout had declined to just RON 145 million (€29 million). Total distributions to shareholders also fell sharply, from RON 1.1 billion (€220 million) in 2021 to RON 212 million (€42 million) in 2024.
Looking ahead to 2025, expected shareholder payouts are estimated between RON 200–250 million (€40–50 million), a level far below previous years. This trend highlights the limitations of a liquidation-based model and the need for a new strategy. Without change, analysts caution that FP’s persistent discount to net asset value (NAV), currently close to 40%, could remain entrenched, discouraging investor interest and limiting growth potential.
The Proposed Strategy
The future plan, put forward by IRE AIFM HUB and Impetum, is designed to reposition FP as an investment engine rather than a shrinking fund. The new strategy rests on two main pillars:
- Direct Investments: Targeting Romanian and regional companies across technology, healthcare, renewable energy, and manufacturing. By supporting fast-growing industries, FP aims to build long-term value.
- Fund-of-Funds Component: Providing capital to domestic private equity and venture capital managers, fostering innovation and strengthening Romania’s capital market ecosystem.
This approach would mark a significant departure from asset liquidation, aligning FP more closely with national economic development objectives and the needs of a modernized investment environment.
Current Position of Fondul Proprietatea
As of mid-2025, the fund’s metrics reflect both its challenges and opportunities:
- Share price (BVB, August 2025): ~RON 0.4225 (€0.085)
- NAV per share (31 July 2025): RON 0.7039 (€0.14)
- Discount to NAV: ~40%
- Market capitalization: ~RON 1.25 billion (€250 million)
The portfolio remains concentrated in strategic national assets. The largest holdings include:
- CN Aeroporturi București — ~49%
- Port of Constanța — ~16–17%
- Salrom — ~12–14%
- ALRO — ~5–6%
- Zirom — ~1%
More than 80% of the portfolio is invested in unlisted companies, with nearly 70% tied to infrastructure. This makes FP not only a financial player but also a critical stakeholder in Romania’s infrastructure development.
Dividends and Shareholder Commitments
Despite preparing for a strategic pivot, FP has continued to fulfill its obligations to investors. At the April 2025 General Shareholders’ Meeting, the fund approved the distribution of 2024 net profit, including a gross dividend of RON 0.0409 (€0.0082) per share. Payments began on 19 June 2025, reflecting the fund’s ongoing focus on transparency and investor trust during the transition.
Outlook
The September 2025 shareholder vote will be decisive. If the proposed management transition and new strategy are approved, Fondul Proprietatea will move away from a model defined by declining distributions and asset disposals. Instead, it will embrace growth, diversification, and long-term value creation.
The new direction could help reduce the persistent NAV discount, channel capital into high-potential sectors, and strengthen Romania’s financial markets. In doing so, FP would reaffirm its position as a cornerstone of the national economy — not only preserving value for its shareholders but also fueling future development.
2025 thus marks a turning point. The outcome of the upcoming vote will determine whether FP remains bound to a legacy of liquidation or evolves into a modern, growth-oriented investment fund capable of shaping Romania’s economic landscape for years to come.
