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Private Equity Confidence Survey Central Europe

What goes up…

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 38th edition of the programme.

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What goes up…

Central European Private Equity Index: Key findings

  • The Index has dropped but remains above the 10-year average and signs of positivity can be seen throughout our latest Survey. Confidence around the economy remains reasonably upbeat, with over half (58%) expecting conditions to remain the same (41%) or improve (17%). Additionally, over half of respondents (61%) expect to focus on new investments in the first half of 2022, a gentle increase on our last Survey and sign of investor confidence.
  • Deal sizes may be stabilizing, with over half of deal-doers (57%) expecting transaction sizes to stay the same, a marked increase from 37% in our last Survey. Likewise, the percentage of respondents expecting sizes to increase has fallen sharply, from 59% over the summer to 39% now. This may be linked to pricing, with 7% of respondents feeling vendor price expectations had come down in the second half of 2021. These outlooks may be a sign of a healthy market, since high valuations combined with increasing sizes can point to unsustainable metrics last seen prior to the Global Financial Crisis.
  • The high pricing environment of 2021 may be cooling according to our respondents’ sentiment. While 43% feel pricing had increased in the second half of 2021, a similar percentage (46%) expect prices to remain the same over the first half of 2022.
    Additionally, just a fifth (22%) expect prices to rise in 2022, down from 41% expecting continued rises in our previous Survey. Another fifth (20%) expect prices to fall in the first half of 2022, up markedly from only 6% expecting this in our summer Survey.

Private Equity Confidence Survey

Download the report to find out more (PDF)

The Index’s drop is unsurprising as it was at a very high level. Experienced deal doers in the region may be pausing as pricing became unsustainable for certain assets, and are pivoting towards more cautious and value-adding approaches in the transactions they pursue now. They are also awaiting more clarity on inflation and rising interest rates.

- says Dusan Sevc, Deloitte Partner and Private Equity Leader.

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