Sentiment in the German private equity market increased sharply in early summer, according to the latest data. The business climate indicator for private equity investments in established enterprises rose by 33.3 points to -3.9 balance points, placing it just below its long-term average. This marks the second largest increase since the indicator was first measured.
Both current business situation assessments and future expectations have shown significant improvement. Media reports indicate that international capital investors are planning to shift their focus more toward Europe due to economic and fiscal policy developments in the United States. This anticipated redirection of capital is seen as a key factor behind the widespread improvement in sentiment.
"The hope that this will generate an influx of capital appears to be the driver of the broad sentiment improvement," according to the report.