Key Takeaways
- • Central European private equity deal-makers project strengthening activity through year-end 2026, with 36% anticipating increased transaction volumes and only 8% expecting a decline, matching the Winter Survey's pessimism floor.
- • Economic conditions remain stable across the region, with 74% of respondents forecasting no change; 18% expect improvement despite geopolitical tensions in the Gulf, while only 8% anticipate deterioration—a narrowing of downside risk compared to prior surveys.
- • Leverage and debt availability have stabilized, with 70% of practitioners expecting current leverage levels to hold steady; 20% project increased debt availability and 10% anticipate contraction, signaling normalized liquidity conditions.
- • The Deloitte Private Equity Confidence Index maintains momentum above its historical average of 116, with the index at 132-135 across recent editions, reflecting sustained optimism in Central European deal-making prospects.
- • AI adoption in deal sourcing remains nascent despite broader deployment momentum: only 18% of respondents rate AI as highly helpful in identifying investment targets, while 54% view it as moderately helpful and 28% see only limited utility.
Summary
Central European private equity practitioners are maintaining robust confidence in deal activity through the remainder of 2026, according to the latest Deloitte Private Equity Confidence Index. The sentiment barometer reveals that despite a challenging macroeconomic and geopolitical backdrop—including ongoing tensions in the Gulf—market participants continue to project positive momentum. Over one-third of respondents (36%) anticipate an increase in transaction activity levels, while only 8% expect a reduction, unchanged from the Winter Survey and indicating a floor of pessimism among market participants.
The economic assessment underpinning this confidence reflects cautious stability. Seventy-four percent of respondents expect no material change in broader economic conditions, a neutral stance that provides a foundation for deal activity. More notably, 18% of practitioners forecast improving conditions, a meaningful proportion given external headwinds, while just 8% anticipate deterioration—a decline from prior survey results. This narrowing of downside expectations suggests growing confidence in Central Europe's economic trajectory and deal environment.
Liquidity and leverage conditions have stabilized after periods of constraint, supporting the positive deal outlook. Approximately 70% of respondents expect current leverage levels to remain steady, indicating normalized credit conditions. Twenty percent anticipate increased debt availability through year-end, while 10% foresee contraction. This distribution underscores a market in equilibrium rather than one facing acute financing pressures, a critical enabler for sustained deal-making momentum across the region.
Artificial intelligence adoption in deal sourcing and target identification has accelerated but remains underutilized relative to its broader deployment across the financial services sector. Only 18% of respondents classify AI as highly helpful for identifying future investment targets, while 54% rate it moderately helpful and 28% report limited utility. This gap between technology deployment and perceived value in deal sourcing suggests opportunities for performance optimization as platforms mature and practitioner skill sets evolve.
The Deloitte Private Equity Confidence Index has consistently traded above its historical average of 116, with recent editions registering at 132 to 135, reinforcing the signal of sustained regional optimism. This trajectory reflects Central European private equity practitioners' conviction in deal fundamentals and the region's investment prospects extending into 2026 and beyond.
The economic assessment underpinning this confidence reflects cautious stability. Seventy-four percent of respondents expect no material change in broader economic conditions, a neutral stance that provides a foundation for deal activity. More notably, 18% of practitioners forecast improving conditions, a meaningful proportion given external headwinds, while just 8% anticipate deterioration—a decline from prior survey results. This narrowing of downside expectations suggests growing confidence in Central Europe's economic trajectory and deal environment.
Liquidity and leverage conditions have stabilized after periods of constraint, supporting the positive deal outlook. Approximately 70% of respondents expect current leverage levels to remain steady, indicating normalized credit conditions. Twenty percent anticipate increased debt availability through year-end, while 10% foresee contraction. This distribution underscores a market in equilibrium rather than one facing acute financing pressures, a critical enabler for sustained deal-making momentum across the region.
Artificial intelligence adoption in deal sourcing and target identification has accelerated but remains underutilized relative to its broader deployment across the financial services sector. Only 18% of respondents classify AI as highly helpful for identifying future investment targets, while 54% rate it moderately helpful and 28% report limited utility. This gap between technology deployment and perceived value in deal sourcing suggests opportunities for performance optimization as platforms mature and practitioner skill sets evolve.
The Deloitte Private Equity Confidence Index has consistently traded above its historical average of 116, with recent editions registering at 132 to 135, reinforcing the signal of sustained regional optimism. This trajectory reflects Central European private equity practitioners' conviction in deal fundamentals and the region's investment prospects extending into 2026 and beyond.
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