Central European Private Equity Confidence SurveyJune 2009 |
Publish Date:
“Have we reached the bottom?” that is the main issue being discussed amongst fi nance professionals in Central Europe. The Private Equity confidence index has decreased significantly since reaching a peak in April 2007; however, the results of our most recent survey highlight an increase in confidence going into the second half of 2009.
Governments and central banks have taken unprecedented actions to stimulate recovery in the global economy and whilst it may be too early to talk about a change of fundamentals, the recent rallies in stock markets around the world would suggest that these efforts are restoring confi dence.
Clearly the increase in optimism reflected in our survey is coupled to those being felt in Western Europe and the United States but Central Europe does still provide compelling arguments for the increased confidence experienced within the Private Equity community. Prime assets including secondary wave privatisations are still coming to market, valuations remain attractive compared to Western European counterparts and many believe that the region will fare better than others affected by the global economic downturn.
Ultimately only time will tell and with confi dence still remaining subdued it may be too early to call the revival of the M&A activity but based on the weight of opinion it appears that we may have reached a bottom and the worst may now be behind us.
Key findings
- The consensus view as at April 2009 shows much higher levels of optimism compared to October 2008, with the index gaining 30 points.
- Concern about the economic environment still exists with 51% still expecting further economic deterioration.
- The split of time between portfolio management and new investment activities is expected to be largely equal going into the next period.
- The return on investments is more bullish with the proportion expecting improvement increasing from a record low of 5% in October 2008 to 19% in April 2009.
| PE house | Company | Country | Period | Est. Value* | Stake |
|---|---|---|---|---|---|
| *) In millions of EUR | |||||
| Enterprise Investors | Web Inn | Poland | June 2009 | 3.6 | 100% |
| Enterprise Investors | R&C Union | Poland | May 2009 | 3.0 | 47.9% |
| Mid Europa Partners | UPC Slovenia | Slovenia | May 2009 | n/a | 100% |
| Arx Equity Partners | Lexum Group | Czech Republic | April 2009 | 20.0 | 100% |
| Arx Equity Partners | Kakadu Sp. z o.o. | Poland | March 2009 | 9.5 | n/a |
| GED | Diamedix | Romania | March 2009 | 12.0 | 80% |
| 3TS Capital Partners | Investor.bg | Bulgaria | February 2009 | n/a | 16.77% |
| Enterprise Investors | Bio-Profil Sp. z o.o. | Poland | February 2009 | 3.2 | 36% |
About the survey
Deloitte's Central European Private Equity Confidence Survey reflects the expectations of private equity professionals focusing on Central Europe. The survey has been conducted twice a year since March 2003 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.
Private Equity Confidence Survey
(95.87 KB)
