Emerging Europe is likely to attract more investment in the next year than Asia, Russia and South America, with Poland and Romania proving to be the most attractive venues, a survey of private-equity groups has found.
More than two thirds of 100 private-equity professionals quizzed in a survey by data provider Mergermarket said the region was the most likely destination of investment for Western private-equity firms.
This was nearly double the number who thought Asia and Russia would attract the most investment, while one in 10 thought that South America would be the prime location for Western equity investment.
The report was compiled by Remark, the market-research division of Mergermarket, in conjunction with accountancy KPMG LLP, investment bank Unicredit and law firm Baker & McKenzie.
To bolster private flows into the region, 71% of respondents said, governments in the region should implement favorable tax incentives to encourage external investment. Half thought that governments should reduce protectionist measures against foreign firms. The survey found that, in Eastern Europe, Poland and Romania attracted the most attention.• From Financial News at www.efinancialnews.com.