Private Equity Confidence Survey

Analysis

Focus on Central Europe: Private Equity Confidence Survey

Caution returns

The Private Equity Confidence Survey has been tracking the changing sentiments of the Central European investment community every six months since 2003.
The 32nd edition suggests that the Central European private equity market remains strong, but the pace of deal activity may slow down.

Highlights of the findings include:

  • 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 there are positive signs that 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 the Private Equity Confidence Index, which dropped to 105, its lowest level in three years. The majority of respondents expect activity levels to continue, up from the last survey, though just a tenth expect activity to increase, down from nearly a third in spring.
    Deals should be funded by the region’s liquid leverage markets, with 82 percent 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 percent 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.

Find out more and read the full report.

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