CEE - Recovery to be protracted

Almássy further highlighted the three areas required for long-term growth and their encouraging yet limited progress in the region: well developed infrastructure, an efficient public sector, and a stable banking system.

Although western industry professionals might find it difficult to relate to such troubles there were plenty of issues discussed in various panels, such as local vs. global presence, credit liquidity, financing structures and valuation discrepancies that rung closer to home. Indeed, it seems when it comes to doing deals in the current climate, private equity professionals face similar hurdles wherever they are based.

Overall there was a cautiously optimistic mood, with a general consensus that the CEE private equity market is moving towards a consensual environment where lenders work more closely with vendors and GPs to make deals work. Additionally, as Almássy points out, the CEE region is not one single market and economic fortunes vary from country to country, giving private equity the opportunity to continue to flourish in various pockets throughout the region.

In the short- term, however, survival rather than performance will be at the forefront of most investor's minds. As Rod Selkirk quipped in his opening speech: "Returns? 30-40% seemed to be the figure that was being told to LPs during the boom time. Well, you can still return 30-40% today, but that is most likely going to be of capital invested and not IRR".

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Send to  

• Topics
• Industry
• CEE