Executive Summary
We provided a global private equity firm with a comprehensive cross-country economic analysis covering Central and Eastern Europe. Our detailed risk assessment allowed the client to evaluate and compare the structural and macroeconomic risks of 14 countries, enabling them to select the five most attractive markets for further investment due diligence.
Client Background
The client is a global private equity investment firm that seeks to identify high-potential investment opportunities across emerging markets. They were considering expanding their portfolio into Central and Eastern Europe and needed a robust framework to assess the economic, financial, and political risks in the region.
Challenge
Given the diversity of the Central and Eastern European region, the client needed a detailed, comparable analysis of economic and institutional risks across 14 countries. The goal was to identify which markets presented the most promising opportunities and to understand their unique risk profiles in order to narrow down the countries for further due diligence.
Solution
We conducted an extensive assessment of each country’s macroeconomic indicators, financial conditions, and political landscape. Using this data, we developed an index to rank the countries based on their risk profiles, specifically focusing on inflation and exchange rate risks. The analysis was designed to provide stakeholders with a clear, structured view of relative risks, allowing the client to identify which countries warranted deeper investigation. The deliverables included a PowerPoint report summarizing key findings with descriptive analysis, tables, and graphics, as well as an Excel spreadsheet with macroeconomic data and forecasts for each country.
Detailed Results
Our comprehensive analysis allowed the client to efficiently compare the economic risks across the 14 countries and select five markets for further exploration. This framework gave the client the clarity needed to prioritize their investment focus, significantly improving the decision-making process for their expansion strategy.
