Key Takeaways
- • Central Europe's Private Equity Confidence Index rebounded to 133, well above the historical average of 116, signaling robust optimism for 2026 deal activity and market conditions across the region.
- • Deal activity expectations have shifted toward stability, with 61% of respondents anticipating market activity to remain unchanged (up from 47% previously), while only 11% expect a decline versus 14% in the prior survey.
- • Debt financing sentiment has reached its most optimistic level in a decade, with 41% of investors expecting increased debt availability (up from 31%) and 53% expecting liquidity to remain stable, reflecting expanded funding from banks and alternative lenders.
- • Economic sentiment remains constructive, with 58% expecting stable conditions and 24% forecasting improvement, while pessimistic outlooks have contracted to 18% from previous levels, suggesting easing uncertainty following policy clarity.
- • The recovery in confidence appears linked to stabilization following the US administration transition, allowing deal-doers to recalibrate strategies around evolving macroeconomic and regulatory backdrops.
Summary
The Deloitte Private Equity Confidence Survey for Central Europe reveals a significant rebound in investor sentiment, with the regional PE Confidence Index climbing to 133—a level comfortably exceeding the historical average of 116 and indicating strong conviction for 2026 activity. This recovery represents a marked shift from the Winter Survey's temporary decline and reflects growing certainty among investors navigating post-election policy transitions.
Expectations for deal market activity have tilted decisively toward stability rather than contraction. Sixty-one percent of respondents now anticipate market activity will remain flat, a substantial increase from 47% in the previous survey. Meanwhile, the proportion expecting growth has moderated to 28% from 39%, while those forecasting a reduction has compressed to just 11% from 14%. This stabilization suggests investors are moving past acute uncertainty and repositioning for a sustained, predictable operating environment rather than bracing for either dramatic expansion or retrenchment.
Debt financing sentiment has shifted to levels not seen in a decade, with 41% of investors now expecting debt availability to increase—up from 31% previously—while 53% anticipate liquidity will remain constant. This optimism reflects the diversification of funding sources across Central Europe, spanning traditional bank lending to emerging alternative lenders operating both regionally and globally. Improved debt visibility is a critical enabler for deal-making, particularly in larger leveraged transactions and continuation funds.
Economic outlook sentiment has strengthened materially. Fifty-eight percent of respondents expect economic conditions to remain unchanged, while nearly a quarter (24%) project improvement. Pessimism has declined to 18%, down from prior levels, suggesting that initial policy uncertainties stemming from the US administration transition have begun to settle. This easing of concern appears to be the primary driver behind the Index's rebound, enabling investors to move from defensive positioning toward execution planning.
Jan Vomacka, Deloitte's Private Equity Leader, attributed the recovery to sufficient elapsed time following the new US administration, which has allowed "uncertainties to settle and deal-doers to gain comfort around their abilities to navigate challenging and changing backdrops." The confluence of stable debt markets, constructive economic expectations, and clarified policy frameworks positions Central Europe as an attractive market for capital deployment in 2026.
Expectations for deal market activity have tilted decisively toward stability rather than contraction. Sixty-one percent of respondents now anticipate market activity will remain flat, a substantial increase from 47% in the previous survey. Meanwhile, the proportion expecting growth has moderated to 28% from 39%, while those forecasting a reduction has compressed to just 11% from 14%. This stabilization suggests investors are moving past acute uncertainty and repositioning for a sustained, predictable operating environment rather than bracing for either dramatic expansion or retrenchment.
Debt financing sentiment has shifted to levels not seen in a decade, with 41% of investors now expecting debt availability to increase—up from 31% previously—while 53% anticipate liquidity will remain constant. This optimism reflects the diversification of funding sources across Central Europe, spanning traditional bank lending to emerging alternative lenders operating both regionally and globally. Improved debt visibility is a critical enabler for deal-making, particularly in larger leveraged transactions and continuation funds.
Economic outlook sentiment has strengthened materially. Fifty-eight percent of respondents expect economic conditions to remain unchanged, while nearly a quarter (24%) project improvement. Pessimism has declined to 18%, down from prior levels, suggesting that initial policy uncertainties stemming from the US administration transition have begun to settle. This easing of concern appears to be the primary driver behind the Index's rebound, enabling investors to move from defensive positioning toward execution planning.
Jan Vomacka, Deloitte's Private Equity Leader, attributed the recovery to sufficient elapsed time following the new US administration, which has allowed "uncertainties to settle and deal-doers to gain comfort around their abilities to navigate challenging and changing backdrops." The confluence of stable debt markets, constructive economic expectations, and clarified policy frameworks positions Central Europe as an attractive market for capital deployment in 2026.
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