Private Equity Confidence Survey Central Europe

Analysis

Private Equity Confidence Survey Central Europe

Great expectations

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 36th edition of the programme.

Great expectations

Great expectations

Central  Europe’s private equity markets felt the impact of Covid-19, but the drastic dip in confidence seen over the summer has given way to the largest confidence gain in our Survey’s 17-year history, nearly doubling from 62 to 123 in the latest Deloitte Central Europe Private Equity Confidence Survey. 

Central European Private Equity Index: Key findings

  • Our latest Survey reveals a complete reversal on market sentiment since our last Index, with the vast majority of deal-doers (63%) expecting an increase in activity, up from just 17% in the last Survey. Likewise, just 17% expect a reduction, down from 70% over the summer. Backing this up, nearly three-quarters of deal-doers (73%) expect to buy more in the coming months, the highest proportion since 2011.  
  • In a sign of dramatically renewed confidence, there has been a near 50% uptick on the proportion of respondents expecting to focus on new investments since our last Survey, with two thirds (65%) now prioritizing that over the coming months, up from 45% in our last Survey. This upturn comes as a portfolio management focus halves, from 45% overthe summer to 22% now. This is likely a reflection of the fact that most GPs put a firm focus on nurturing their portfolios in the spring and summer as the pandemic unfolded, and now, in more robust shape and with a clearer picture of how firms are performing, houses can turn their sights to new deals once again.
  • Deals will be supported by robust leverage markets, with 76% of respondents expecting the availability of debt finance to remain the same (63%) or increase (13%) over the coming months, a refreshing change from our last Survey, when most (62%) expected a decrease.

Private Equity Confidence Survey

Download the report to find out more (PDF)

These are very encouraging signs at a time when confidence had been ebbing. The extraordinary year dented - but did not break - confidence. This is positive, though not entirely surprising given the region’s established deal-doers have more than 20 years of deal-doing experience behind them to draw on.

- says Mark Jung, Deloitte Partner and Central Europe Private Equity Leader. 

The market has evolved greatly since the Global Financial Crisis – structures, deal types and growth strategies are all now very well established and so private equity backers can be a great support to companies already in their portfolios as well as others seeking sustainable paths back to growth in the coming months,

- adds Mark Jung.