Private Equity Confidence Survey Central Europe
Steady Confidence
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 47th edition of the programme.
Steady Confidence
Serving as a barometer of sentiment of private equity practitioners in the region for over 20 years, the Deloitte Central European (CE) Private Equity (PE) Confidence Survey Index remains above our historical average (of 116) to land at 132. The latest result highlights the value of experience-based expertise among the region’s private equity community.
Central European Private Equity Index: Key findings
Respondents expect transaction activity levels to remain the same for the remainder of the year, with 56% expecting no change. Over a third (36%) anticipate an increase, and just 8% – same as our Winter Survey – expect a reduction in activity.
Expectations around the economic backdrop are steady, with 74% expecting no change. It is encouraging that nearly a fifth (18%) expect conditions to improve, impressive given the ongoing tensions in the Gulf, and under a tenth (8%) expect conditions to worsen – lower than our last Survey.
Liquidity may have stabilised, with over two-thirds (70%) expecting current leverage levels to be maintained. A fifth expect availability of debt to increase during the remainder of the year, and a tenth expect a contraction.
"Uncertainty is unlikely to disappear in the near term, but , the region's private equity industry has repeatedly demonstrated its ability to adapt. More than three decades of building businesses through changing economic cycles has created a market that is increasingly sophisticated, resilient and internationally connected."
says Jan Vomacka, Deloitte Partner and Private Equity Leader.
Central Europe PE Confidence Index
The Index has remained fairly steady at 132, comfortably above our historical average of 116 and pointing to continued optimism for the remainder of this year. This is significant in that the Survey comes amidst fresh uncertainty in the Gulf and the resultant shocks from the geopolitical tensions in the Strait of Hormuz. That this has chipped rather than dented the Index is a testament to the region’s experienced deal-doers.
