Central European Private Equity Confidence Survey May 2012: “The new normal”
Our most recent survey shows that the last six months have shown a cautious recovery in optimism among the investment community across Central Europe, overturning the record decline in confidence that was recorded in the autumn of 2011.
- The sudden decline in the index in October 2011 from one of the highest levels on record to its second lowest has been partly reversed, with a 31-point climb to 101
- While this is around the same level recorded in April 2008, immediately prior to a collapse, the index is climbing today rather than declining that was the case four years ago
- The increasing levels of confidence suggest that fears of region-wide economic turmoil that characterised our last report have subsided
- The more positive outlook expressed by our respondents is substantiated by the high volume of investments made in comparison to exits over the last six months, suggesting the existence of a buyer’s market and a preparedness to take risk
Overall the current activity suggests the flexibility of the PE professionals operating in the CE region, who have responded to the uncertainty of market conditions to continue finding opportunities to create growth and value.