Private Equity Confidence Survey – Summer 2024

Analysis

Central Europe Private Equity Market Confidence Survey

Enduring 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 43rd edition of the programme.

Enduring Confidence

The Deloitte Central European (CE) Private Equity (PE) Confidence Survey Index has served as a barometer of sentiment for over 20 years and has just achieved its longest-ever climb to surpass the historical average. It suggests activity levels are set to increase, with a number of successful fundraises a testament to the ability of experienced PE houses to generate strong returns across cycles.

Central European Private Equity Index: Key findings

Sentiment regarding the economy continues to improve, with 59% expecting conditions to remain the same and a third (31%) expecting conditions to get better. Pessimism has halved again, with just a tenth now expecting a decline, down from a fifth last time and 43% a year ago. The direction of travel is clearly encouraging.

Expectations around market activity are stabilizing, with over half of respondents (51%) expecting activity levels to remain the same, up from 37% last time. Over two-fifths expect an increase, while the proportion expecting a reduction in activity has more than halved to just 6%.

Investors in Central Europe are vastly more optimistic about liquidity in the region, with a third expecting debt availability to increase (33%) or remain the same (59%) for the rest of this year. The numbers reinforce the positivity seen over the last year, with our latest Survey the fourth in a row to see a reduction in pessimism.

„We are greatly encouraged to see the Index surpassing its 20-year average after a period of prolonged uncertainty. This recovery in sentiment is more gradual and sustained than those which followed the three other dips, suggests cautious optimism and reflecting experienced gleaned over a quarter century of navigating economic cycles and complex environments.“ says Jan Brabec, Deloitte Partner and Private Equity Leader.

Central Europe PE Confidence Index

The Index has achieved its longest-ever continuous climb, rising for a fourth consecutive semester to exceed the Survey’s historical average and land on 118.

Other periods of growth also followed dips, such as in 2008, 2012 and 2020, but this recovery is longer and more gradual than the others, suggesting our respondents are more cautious in their optimism. This is unsurprising, given many in the current generation of deal-doers boast a quarter century navigating economic cycles and complex environments.

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