Private Equity Confidence Survey – Winter 2018

Analysis

Private Equity Confidence Survey - Winter 2018

Caution 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 32nd edition of the programme.

Central Europe’s private equity markets remain strong, but the pace of deal activity may be slowing, according to the latest Deloitte Central Europe Private Equity Confidence Survey.

The Central European private equity market may be reverting to its usual pace of activity following a prolonged period of large exits and fundraisings as well as strong levels of deal-doing. While we remain confident conditions remain conducive to transacting, respondents are hinting at some caution as we enter a less certain period politically and thus economically. This is reflected in economic expectations as well as our Index, which dropped to 105, its lowest level in three years.

The majority of respondents expect activity levels to continue, up from last survey, though just a tenth expect activity to increase, down from nearly a third in the Spring. Deals should be funded by the region’s liquid leverage markets, with 82% expecting current liquidity to be maintained and another tenth expecting it to increase further. Capital for investment is expected to compete most intensely for market leaders, with 64% expecting these businesses to be the most sought-after. While they are the perennial hotspot for investment, this survey’s response is the highest in two years.

Private Equity Confidence Survey

Download the report to find out more (PDF)

Caution returns

Exits for CE PE over the last two years - along with some larger headline deals - have helped attract investors to the region, with a number of established private equity houses announcing funds. These capital raises should drive deal activity, with a growing number of addressable funding opportunities available as businesses in the region mature and seek external backers to provide funding and expertise.

Mark Jung, Partner, Private Equity Leader, Deloitte Central Europe