The German private equity market experienced a downturn at the end of 2024. The sentiment indicator fell to -44.6 balance points in the fourth quarter. If not for the sharp but short-lived decline during the COVID-19 crisis in early 2020, this would have been a record low.
Economic concerns among small and medium-sized enterprises in Germany are significantly impacting business activities within the private equity sector. These worries have overshadowed recent reductions in key interest rates, which were insufficient to stop the continued decline in sentiment.
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