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Striving to shorten the time‐period necessary for the huge transfer of the property needed by the ongoing economic reforms, Bulgaria developed a mass privatisation scheme (MPS). Based on specific financial intermediaries called privatisation funds (PF) that scheme encounters a major problem – to facilitate the establishment of an effective system for corporate governance of the privatised companies. Can it succeed in resolving that problem? This paper provides an analysis of mass privatisation objectives, the legal and economic frameworks of privatisation, funds’ activities, their goals and portfolio structures. It examines the types of funds’ founders and the presence of different groups among their shareholders. Additionally, it outlines the role of financial institutions in the process. The study is based on the PFs’ prospectus for capital rise. Its results should not be seen as final, since the process is competitive, and not all funds will be able to achieve what they strive for in their prospectus.

Although mass privatizations in Slovakia had the same starting point as those in the Czech Republic, mass privatisation in Slovakia led to a different ownership structure, which also partly reflects the different industry structure. Proximately to political decision making of the new management is close and explicit. The new structure lends itself to targeted industrial policy.