Deloitte: Investors’ confidence in Eastern Europe is approaching the 2003-2007 levels

Investors are showing increasing confidence in investing in the Eastern European region, approaching levels similar to those recorded within 2003 and 2007, reveals Deloitte’s latest survey – Deloitte CE Private Equity Confidence. Some 60 percent of respondents - twice as many as in the previous research and the maximum in the past two years - expect a revival in terms of deal activity, hence the economic downturn might eventually come to an end states a related media release.

There is a positive sentiment arising with respect to the economic climate, 61 percent of respondents anticipating an improvement in the coming six months, when half of the total respondents said that will focus mostly on new transactions. Average deal sizes is expected to remain the same, with little deviation, 85 percent of respondents foreseeing no change. Thus, the Eastern European market remains a mid-market opportunity, with the occasional large deal, shows the survey conducted by Deloitte.

Although the domestic market has seen few transactions closed, the overall positive evolution is also reflected in Romania.  The IT&C sector along with the financial services generated higher interest among investors between October 2013 and April 2014, shows the Deloitte’s survey.

“It is encouraging to see an increase in deal activity in Romania compared to last year”, said Hein van Dam, Partner-in-Charge Financial Advisory Deloitte Romania.

With the acquisition of Nextebank and the acquisition of a majority stake in Star Storage, Axxess Capital was among the most active funds. Other transaction involved the management of World Class Romania, the Romania based fitness club chain, which has acquired the company in a management buyout transaction backed by Resource Partners, from World Class Seagull International. Also, US VC Francisco Partners acquired Avangate, a Romanian software business, from 3TS Capital Partners, Enterprise Investors and Intel Capital sold its 32.5 percent stake in Siveco, a Romanian software company, back to its management for an undisclosed consideration.