Across all cycles
Central Europe Private Equity confidence survey October 2014
The region continues to provide concrete evidence of its ability to generate distributions for investors.
Garret Byrne, Private Equity Leader for Central Europe
The latest survey reveals that Private Equity Investor confidence in CE remains relatively high, with a stability of expectations. A gentle dip in confidence has placed the index back to where it was a year ago which is likely a reflection of world events and their impact on the economies.
There has been a doubling (to 16%) of the proportion of respondents expecting conditions to worsen. Just 11% expect the economy to improve – down sharply from 61% last survey. The percentage of respondents expecting market activity to increase has halved since last survey, to a third. This may be down to a slowdown in the number of fund announcements and so may pick up again once GPs currently on the fundraising trail successfully close their vehicles. Only 3% of deal-doers fear a decrease in activity, while nearly two thirds expect no change.
A number of successful fund closes in the last year means those GPs are now focused more on putting fresh funds to work; as such, the proportion of respondents planning to focus on fundraising for this year has fallen gently from 19% to 16%.