Central European Private Equity Confidence SurveyOctober 2009 |
The 14th edition of the Deloitte Central European Private Equity Confidence Index shows that confidence among PE practitioners is returning to almost pre-crisis levels and only a small minority now expect the economic environment to deteriorate further. The recovery in confidence has been sharp and rapid with data indicating that professionals are optimistic about private equity coming back on track.
Professionals are expressing far more optimism about the overall economic climate in the next six months and expecting a return to growth. A significant proportion of respondents said they expect that the economies of Central Europe will outperform those of Western European countries.
While restricted debt markets have been inhibiting M&A activity, distressed companies and companies in restructuring are becoming important targets for funds that want to buy assets cheaply and have the appropriate risk appetite and mandate to do so.
Key findings
- The consensus view in the autumn of 2009 shows that confidence amongst PE professionals has continued to increase, with the index gaining 69 points since April 2009.
- Debt markets continue to be frozen but ‘spring’ is expected to come soon.
- New investments predominantly in market leaders will be the main focus of PE funds for the next six months.
- PE in Central Europe will focus on opportunities arising from distressed transactions.
| PE house | Company | Country | Period | Est. Value* | Stake |
|---|---|---|---|---|---|
| *) In millions of EUR | |||||
| EQT Partners AB | HTL-Strefa S.A. | Poland | October 2009 | 210.4 | 100% |
| CVC Capital Partners | Anheuser-Busch InBev’s Central European operations | BiH, Bulgaria, Croatia, Czech Republic, Hungary, Montenegro, Romania, Serbia and Slovakia | October 2009 | 1,500 | n/a |
| Mid Europa Partners LLP | Invitel Holdings A/S | Hungary | September 2009 - pending | 740.2 | 65% |
| GED Iberian Private Equity | SC Total Eurobusiness SA | Romania | August 2009 | 6.0 | 60% |
| EQT Partners AB | CableTel AD | Bulgaria | August 2009 | n/a | 100% |
| SGAM AI Private Equity | Konsalnet SA | Poland | July 2009 | 22.1 | 80% |
| Penta Investment Limited | Fabryka Lin i Drutu Drumet Sp. z o.o. | Poland | June 2009 | 26.5 | n/a |
| 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% |
About the survey
Deloitte's 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 active in 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
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