Private Equity Confidence Survey Central Europe
Resilience Returns
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 45th edition of the programme.
Taking the temperature of private equity practitioners in the region for over 20 years, the Deloitte Central European (CE) Private Equity (PE) Confidence Survey Index has landed at 133, comfortably above our historical average of 116. The latest result marks a bounce-back after its impressive and continuous climb was interrupted over the Winter, and highlights the experience-based expertise and resilience of the region’s dealmakers.
Central European Private Equity Index: Key findings
The majority of respondents (61%) expect market activity to remain the same, up from 47% last time. Over a quarter (28%) expect an increase, down from 39% last Survey, while the proportion expecting a reduction in activity has reduced from 14% to 11%.
Investors in Central Europe are increasingly optimistic about the availability of debt finance in the region, with 41% expecting debt availability to increase (up from 31% last time) and over half expecting liquidity to remain the same (53%) for the period ahead. The sentiment is the most optimistic in a decade andhighlights the growing availability of funding sources available in the region, from banks to alternative lenders, local and global.
Sentiment regarding the economy is strong, with over half (58%) expecting conditions to remain the same and nearly a quarter (24%) expecting them to improve. Pessimism has eased gently, with under a fifth (18%) expecting a decline, down on our previous Survey.
The Index’s bounce-back is a welcome return to the strong run we’ve seen for the last couple of years. It shows that in spite of ongoing uncertainty, investors in Central Europe see real opportunity to transact and have the experience to do so successfully,
says Jan Vomacka, Deloitte Partner and Private Equity Leader.
A number of impressive fundraises combined with growing leverage sources available in the region, from banks to alternative lenders, local and global, make the region well capitalized for supporting growing businesses in the years to come.
Central Europe PE Confidence Index
The Index has rebounded following a short-lived decline in our Winter Survey to land at an impressive 133, comfortably above our historical average of 116 and is a clear sign that the region is optimistic for the year ahead. The recovery since our last Survey may be because the time elapsed since the new US administration has allowed some uncertainties to settle and deal-doers to gain comfort around their abilities to navigate challenging and changing backdrops.
Michal Tokarski
