Private Equity in EU Accession Countries of Central and Eastern Europe

In 2004, a number of former communist countries will accede to the European Union. These countries have made considerable progress over the past decade in their transition to a market economy. Using interviews and archival data, we examine the prospects for development of private equity in CEE in terms of: Supply of Deal Opportunities; Demand for Private Equity; Infrastructure to Complete Deals; and Opportunities to Realize Gains. We find that, combined with existing professional services support and the blossoming of western-style capitalism, including additional deal sources and improved management practices, CEE private equity investors should find an enhanced environment for investment.