Central European private equity funds have reached the lowest level of confidence since the global financial crisis in the context of the COVID-19 pandemic, but professionals in the field are more optimistic than during the 2008 crisis, according to the latest issue of Deloitte CE Private Equity Confidence Survey.

“The confidence index, which has been declining since the end of 2017, has now reached 62, the second lowest level of all editions of the study, after the one in October 2008, which was 48. Seven out of ten professionals in the study Central European private equity firms forecast a decline in economic activity and worsening economic conditions, as the region’s economies, which are largely consumption-based, expect to see significant GDP contractions in 2020 amid declining demand, caused by rising unemployment,” say the Deloitte specialists, according to Agerpres.

The study also shows that a remarkable part of the respondents believe in a rapid economic recovery, with 13% of them stating that they expect an improvement in economic conditions. At the same time, the pandemic creates a market for buyers, and 74% of respondents believe that 2020 will be a good year to make new investments. Almost half of them (45%) believe that sellers have dimmed their price expectations in the last six months, and more than half (51%) believe that this trend will continue. Therefore, the share of private equity funds expected to focus on new investment in the coming months remained relatively high, at 45%.

In terms of transaction values, most players in the field expect them to remain the same (58%) or decrease (43%). Also, 62% of respondents predict a decrease in liquidity in the coming months.