After the decline recorded in October, the private equity fund confidence index in Central Europe shows growth in the first round of this year’s research, according to a study by the consulting and auditing firm Deloitte on the Analysis of Private Equity Fund Confidence in Central Europe.
The return of optimism is also indicated by numerous completed transactions in the region, highlighting the renewed attractiveness of Central Europe to foreign investors.
For the third consecutive year, the index has recorded growth during the first half of the year, while declining in the second half, with the most pronounced drop occurring in 2011. Reflecting on the published results of the private equity fund confidence survey, Vladimir Milošević, a partner in Deloitte’s Financial Advisory Department, states: ‘It will be interesting to observe investor behavior in relation to the recorded index growth, especially as they will have fresh capital available for investment in Central European markets. It should be noted that funds are increasingly interested in the narrower region, with significant interest from large funds in investing in Croatia and Slovenia, and Deloitte has received numerous requests for analysis preparation.’
The increase of thirty points compared to October 2012 is largely driven by a reduction in the share of respondents predicting further economic slowdown (from 69% to just 21%). There is also a noticeable significant increase in optimism regarding the efficiency of financial investments, with as many as 45% of respondents believing it will improve, the highest share since October 2010. Additionally, the proportion of respondents planning to buy more than sell in the next six months is also increasing.
