Key Takeaways
- • Deloitte's Central European Private Equity Confidence Index stands at 132, remaining comfortably above its historical average of 116, signaling sustained optimism among regional PE practitioners despite recent geopolitical headwinds in the Gulf and Strait of Hormuz.
- • Transaction activity expectations remain stable, with 56% of respondents anticipating no change in deal volumes for the remainder of 2025, while 36% expect increased activity and only 8% forecast a reduction—unchanged from the Winter Survey.
- • Economic sentiment shows resilience, with 74% expecting no deterioration in conditions; notably, 18% anticipate improvement despite ongoing regional tensions, while only 8% expect worsening conditions—a decline from the previous survey.
- • Liquidity conditions have stabilized, with 70% of PE practitioners expecting leverage levels to remain constant, 20% forecasting increased debt availability, and just 10% anticipating contraction—indicating stabilized access to financing.
- • The survey, conducted by Deloitte since 2003 on a semi-annual basis, reflects the experience-based expertise of Central Europe's deal-making community and suggests the region's PE market is positioned for continued activity through the remainder of 2025.
Summary
Deloitte's latest Central European Private Equity Confidence Survey reveals sustained optimism within the region's PE community, with the confidence index maintaining a reading of 132—significantly above the historical average of 116 established since the survey's inception in 2003. The stability of this metric is particularly noteworthy given the timing of the survey amid fresh geopolitical uncertainty, including tensions in the Strait of Hormuz and broader Gulf region volatility. According to Jan Vomacka, Deloitte Partner and Private Equity Leader, the resilience of the index "is a testament to the region's experienced deal-doers," indicating that regional practitioners view current challenges as manageable rather than systemic threats to market activity.
Transaction expectations point toward a stable deal pipeline through the remainder of 2025. A majority of 56% of respondents anticipate no change in activity levels, while over one-third (36%) expect deal volumes to increase. Only 8% forecast a reduction in transaction activity—matching the Winter Survey results and suggesting consistent, measured expectations across consecutive survey periods. This distribution reflects neither excessive exuberance nor material pessimism, positioning Central Europe's PE market for continued—though not explosive—deal-making momentum.
Economic conditions are expected to remain stable, with 74% of respondents anticipating no material change in the broader macroeconomic backdrop. Encouragingly, nearly one-fifth (18%) expect conditions to improve, a figure that stands out given current geopolitical tensions. Conversely, fewer than one-tenth (8%) predict deterioration—a favorable trend compared to the previous survey cycle—suggesting improving near-term visibility among PE decision-makers.
Liquidity conditions have stabilized within the region. Approximately 70% of practitioners expect leverage levels to remain at current levels, while 20% anticipate increased debt availability and 10% foresee contraction. This distribution indicates that access to financing, a critical variable for PE activity, is neither tightening materially nor expanding aggressively—a balanced state that supports predictable transaction planning without signaling abundant dry powder conditions.
The survey underscores Central Europe's positioning as a resilient PE market heading into 2026, with experienced operators maintaining confidence despite macro uncertainty. The consistency of the index and the measured expectations across activity, economic, and liquidity dimensions suggest the region's PE community is neither complacent nor panicked, but calibrated for steady-state deployment of capital.
Transaction expectations point toward a stable deal pipeline through the remainder of 2025. A majority of 56% of respondents anticipate no change in activity levels, while over one-third (36%) expect deal volumes to increase. Only 8% forecast a reduction in transaction activity—matching the Winter Survey results and suggesting consistent, measured expectations across consecutive survey periods. This distribution reflects neither excessive exuberance nor material pessimism, positioning Central Europe's PE market for continued—though not explosive—deal-making momentum.
Economic conditions are expected to remain stable, with 74% of respondents anticipating no material change in the broader macroeconomic backdrop. Encouragingly, nearly one-fifth (18%) expect conditions to improve, a figure that stands out given current geopolitical tensions. Conversely, fewer than one-tenth (8%) predict deterioration—a favorable trend compared to the previous survey cycle—suggesting improving near-term visibility among PE decision-makers.
Liquidity conditions have stabilized within the region. Approximately 70% of practitioners expect leverage levels to remain at current levels, while 20% anticipate increased debt availability and 10% foresee contraction. This distribution indicates that access to financing, a critical variable for PE activity, is neither tightening materially nor expanding aggressively—a balanced state that supports predictable transaction planning without signaling abundant dry powder conditions.
The survey underscores Central Europe's positioning as a resilient PE market heading into 2026, with experienced operators maintaining confidence despite macro uncertainty. The consistency of the index and the measured expectations across activity, economic, and liquidity dimensions suggest the region's PE community is neither complacent nor panicked, but calibrated for steady-state deployment of capital.
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