What’s on the horizon?
Central European Private Equity Confidence Survey May 2013
We are pleased to share with you the10th year anniversary edition of our Deloitte Central Europe Private Equity Confidence Survey which has tracked the changing sentiments of Central Europe's investment community every six months since March 2003.
- There is evidence of a gentle uptick in optimism during the last six months, with the survey regaining the 30 points it had lost in the previous period. This wavering confidence has been the case for five surveys in a row;
- Several PE funds are currently focused on fund raising and we expect that once completed fresh pools of capital could translate into reinvigorated deal activity;
- One constant is the overwhelming expectation of little imminent change as investors await a substantial adjustment in overall market sentiment:
- For example, 72% of respondents expect the level of competition for deals to remain the same over the next few months
- The proportion expecting no change in the availability of debt finance has risen from 69% last time to 76%, the highest share since April 2007
- Portfolio management remains the core focus of respondents, with 55% expecting to spend more time on existing investee companies than seeking out new deals. This may be down to dwindling cash reserves, a focus on fundraising, apprehension about the backdrop in the Eurozone – or a combination of all these.
It will be interesting to see what's on the horizon for Central Europe's private equity practitioners as an increasing number of deal-doers will have fresh funds to deploy in what many see as a great buyers' market.