There is an increased interest for investments from private equity funds focused on Central Europe and it is only expected to keep growing. These funds are also larger, more sophisticated and using debt much more than they were two years ago, according to Deloitte’s most recent Central European Private Equity Confidence Survey.

Key findings

• Renewed optimism regarding economic performance 
  After cooling in September 2005, expectations regarding economic activity improved. Central European countries are still expected to outperform the old EU member states.
• Strong focus on new investments continues 
  With a growing appetite for Central European investments, respondents also expect overall market activity and transaction size to increase. This leads to a distinct move towards buyouts and increased availability of leverage.
• Expectation of higher entry multiples 
  The positive development of the economy in Central Europe and increased competition suggests an increase in entry multiples.
• Strengthening of IPO’s and secondary buyouts as exit strategies 
  Sales to strategic investors are still seen as the most popular exit strategy but secondary buyouts are more and more common. With maturing stock markets in the region, IPO’s are becoming a popular exit strategy as well.

About the survey

Deloitte’s Central European Private Equity Confidence Survey reflects the expectations of private equity professionals focusing on Central Europe. The survey is conducted twice a year and the results are based on questionnaires sent to professionals in private equity firms covering the following Central European countries: Estonia, Lithuania, Latvia, Poland, Czech Republic, Slovakia, Hungary, Romania, Moldova, Bulgaria, Macedonia, Slovenia, Croatia, Bosnia & Herzegovina, Serbia & Montenegro, and Albania.

• Press release: Investments from private equity funds focused on Central Europe are larger and more sophisticated

• 2005
• 2004/2003