The German private equity market has shown signs of stabilization at the beginning of 2025. After a period of declining sentiment over the past three quarters, there was a slight recovery in the business climate index, which rose by 3.2 points in the first quarter. Despite this improvement, business confidence remains low, recorded at -37.3 balance points.
This development raises questions about whether the downturn has reached its lowest point. The upcoming quarters will be crucial in determining if this is indeed the case. However, challenges persist as increased uncertainty in capital markets towards the end of the quarter could continue to impact the market.
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