Private Equity Confidence Survey Central Europe
Resilience Remains
The Private Equity Confidence Survey has been tracking the changing sentiments of the Central European investment community every six months since 2003. Deloitte Central Europe proudly presents the latest report which marks the 44th edition of the programme.
Resilience Remains
Serving as a barometer of investor sentiment for over 20 years, the Deloitte Central European (CE) Private Equity (PE) Confidence Survey Index has remained strong to land at 119. The result ends the four-consecutive-quarter rise and shows a tempering of optimism, likely owing to persistently high interest rates and ongoing conflict on Central Europe's doorstep. That the Index remains higher than a year ago and above the long-term average (115) underlines the resilience and expertise of the region’s seasoned dealmakers.
Central European Private Equity Index: Key findings
Sentiment regarding the economy remains positive, with a third of respondents (30%) expecting conditions to improve and nearly half (48%) expecting them to remain the same. Pessimism has creeped up slightly, with a fifth now expecting a decline, back to the level seen a year ago and upfrom the Summer Survey.
Investors in Central Europe remain refreshingly optimistic about the availability of debt finance in the region, with a third expecting debt availability to increase (31%) and nearly two-thirds expecting liquidity to remain the same (63%) for the year ahead. The sentiment mirrors that seen in our last Survey and is likely a reflection of the private credit community now operating in the region, both from local and global lenders.
Vendor pricing expectations appear to have stabilised. Only 3% reported price increases over the second half of 2024 (from 12% in the summer), nearly a third (31%) noticed a decrease (from 18% in the last time) and nearly half felt prices stayed the same (45% from 63% last time). Looking to 2025, sentiment is mixed. Under a tenth expect prices to rise (9%, versus 14% over the summer) and those expecting decreases remained fairly stable (22%, up from 20%).
The dent in confidence shows that ongoing uncertainty does take its toll, but that the Index remains higher than its historical average (115) is incredibly encouraging. It is clear that investors in Central Europe have the experience and conviction to transact across cycles and create real values in the businesses they back,
says Michał Tokarski, Partner in Charge of Advisory, Head of M&A, Deloitte Poland, Baltics and Ukraine.
Their investments make a meaningful difference to the companies they grow, typically helping to boost profits and headcount by helping businesses to grow faster and more sustainably.
Central Europe PE Confidence Index
The Index reveals more tempered enthusiasm, landing on a respectable 119 to reflect challenges such as high interest rates and the ongoing war in Ukraine. Though the global uncertainty has punctured what had been an impressive Central Europe Private Equity Confidence Index continuous climb, the result of 119 remains very high and above the historical average (115).
Michal Tokarski
