Private equity confidence returns in Central Europe, says Deloitte

Newsroom 05/11/2013 | 15:30

Investors confidence in Central Europe (CE) is at a two-year high, as the Euro zone economic block has returned on a modest growth path, says the latest CE Private Equity Confidence Index by professional services firm Deloitte.

Deloitte said this was the first time in four years the survey has shown improvement for two consecutive six-month periods.

Nearly 60 percent of responders expect to focus on new deals over the next six months. In addition, CE-based private equity funds 3TS Capital Partners, Abris Capital Partners and Enterprise Investors have raised close to EUR 1 billion between them to continue supporting investments in the region.

“This trend is not surprising. While large-scale deals signed by international PE funds are expected to remain very limited, «local» PE funds are focused on mid-market buyouts and growth capital deals”, said Hein van Dam, partner in charge financial advisory at Deloitte Romania.

He added mid-market businesses are striving to diversify their funding sources, providing opportunity for private equity, on the back of an ongoing deleveraging process from banks.