German Private Equity Barometer 4th quarter 2017
News from 2018-02-01 / KfW Research
Sentiment on private equity market still very good
Sentiment in the German private equity market fell slightly in the final quarter of 2017. At 66.1 balance points, the business climate index of the German Private Equity Barometer ended the year only 4.0 points below its third-quarter record level. The minor drop was evident among both early-stage and later-stage investors. But despite the decline, the business climate remained very good in both market segments. 2017 was a year of superlatives in the German private equity market. The assessments of the business climate, fundraising climate, exit conditions and promotional environment have never been better. The record year thus came exactly ten years after the outbreak of the financial crisis. On average for the year, sentiment in 2017 was clearly better than in the German Private Equity Barometer’s previously best year 2007. The downside of the good development, however, were higher entry prices for investments – a challenge investors will probably have to deal with for some time to come.