PE funds invest more, but conduct fewer transactions

The total value of investments made by private equity funds in Poland increased to about €1.5 billion in 2019 from €1.1 billion a year earlier, according to data collected by the consulting company Bain & Company based on transactions whose value was announced. At the same time, the number of acquisitions made by the funds fell in Poland by more than 25 percent due to expectations of an economic slowdown and persistent high valuations of companies.

Last year, the funds invested in 29 companies in Poland compared to around 40 purchase transactions in 2018. The retail sector, consumer goods and healthcare, as well as technology companies, enjoyed the most interest.

“Last year, we saw the first signs of deterioration in investor sentiment both in Poland and in the world,” Jacek Poświata, Partner and Managing Director of Bain & Company Poland / CEE said.

In his opinion, the concerns about the economic growth rate increased, which together with high valuations of companies on the private market translated into a decrease in the number of transactions.

“The current deepening global crisis situation further strengthens these negative market trends,” Poświata added.

(WBJ)