Healthy Central European private equity activity levels set to continue, says Deloitte

The strong momentum underway in Central Europe's private equity markets should continue, according to the latest Deloitte Central Europe Private Equity Confidence Survey.

2018-07-12 12:02:25

The high level of deal activity in Central Europe's (CE) private equity (PE) markets is set to continue, with two-thirds of respondents expecting market activity to remain the same, the highest level in three years. Nearly a third (31 per cent) expect activity to increase further from its currently high level, and just 2 per cent expect activity to slow down – the lowest level in five years.

It then comes as no surprise that two-thirds of respondents (69 per cent) expect to focus mostly on deal-doing in the coming months, in line with the survey over the last two years.
Expectations will be buoyed by liquid leverage markets, with three quarters of respondents (74 per cent) expecting the availability of debt finance to remain the same over coming months. This is up from two thirds (67 per cent) in the last survey, when a fifth (21 per cent) expected leverage to be increasingly available.

"Considering the survey's positive results, I am confident that we will continue to see Private Equity firms participating in more and more transactions in Romania, both on the exit and buy side. If we look at the past 18 months, one third of the deals have involved an investment fund or a PE fund. This can only be a good indicator of Romania's attractiveness and good position on the market," said Radu Dumitrescu, Deloitte Romania Partner. "With a series of large transactions involving Private Equity firms in the past 18 months, Romania is expected to continue to be an interesting territory for financial investors."