For private capital investors in Central & Eastern Europe (CEE), the economic and geopolitical developments of the last several years – including Russia’s invasion of Ukraine – have presented a unique set of challenges, particularly around the international perception of the region. Yet even against the backdrop of the war and a more uncertain global environment, fundamentals remain strong across most CEE economies. Moreover, the structural drivers of investment opportunity in the region – including EU convergence, regional integration and tech talent – are intact. ​

This report takes a closer look at recent private capital trends in CEE and the broader environment for dealmaking. Commentaries from fund managers and allocators point to gaps between perception and reality – and the enduring strength of private capital-backed businesses in the region.