Hitting the right notes
Central Europe Private Equity confidence survey May 2014
Belief that things will get better is crucial to getting deals done – confidence allows business owners to plan for growth, rather than remain in defensive mode. Private equity is well positioned to partner with these businesses as they set out to achieve their plans.
Garret Byrne, Private Equity Leader for Central Europe
We are happy to report that according to our latest Deloitte CE Private Equity confidence survey investor confidence in CE has continued its ascent and is now approaching levels not seen since the region’s peak period between 2003-2007.
Confidence continues to rise, with 18 months of unbroken improvement seeing the index near the peak levels recorded between 2003 and 2007. Two thirds of respondents expect the economy to improve, up from 43% last time.
We have recorded a doubling of the proportion of respondents expecting market activity to pick up, to 60%. This is likely down to GPs having fresh funds to put to work: three funds reached final closes last year, and another three hit first closes in the last few months. Additionally, more than a quarter of respondents feel leverage markets are improving – the highest level in three years – giving a further boost to deal-doing potential.
While deal doers have long had an eye on fundraising, the proportion of respondents planning to focus on that for this year has more than doubled, from 8% to 19%. This will be instead of prioritising new investments, with half expecting to focus mostly on that, down from 59% in the previous survey.