EY-Parthenon presents findings from its inaugural Private Equity Pulse Survey across Central Asia and the Caucasus

EY-Parthenon has published the inaugural Private Equity Pulse: Central Asia and Caucasus – the first structured survey of senior private equity experts actively investing across the region.

The survey of senior investment professionals reveals a market shaped by a clear tension: growing investor confidence alongside persistent structural constraints. While 45% of respondents expect deal activity to increase over the next 12 months, the ecosystem faces challenges that must be addressed to unlock its full potential.

“For much of the past decade, Central Asia and the Caucasus has remained on the margins of global private capital — despite strong fundamentals and clear long-term potential — but this is now beginning to change,” said Timur Pulatov, EY Partner, Head of EY-Parthenon, Central Asia countries and Caucasus. “Reform momentum across key markets is strengthening the investment case, and the region is increasingly attracting the attention of private capital. At the same time, our findings point to a market defined by a fundamental tension: growing opportunity on one side, and structural constraints on the other, most notably around exit pathways. Addressing these constraints will be essential to moving the region from a selective investment destination to a scalable and institutional private equity market.”

Limited exit infrastructure is the defining constraint, cited by 73% of respondents – with 40% reporting zero exits in a typical year. Beyond exits, transaction readiness of target companies remains a critical friction point: businesses lacking IFRS-compliant financials, governance structures, and investor-ready materials extend deal timelines and widen valuation gaps. In a market where equity-only financing dominates (73%) and leverage is largely unavailable, operational value creation is not optional – it is the primary return driver. Investors who embed revenue growth initiatives, governance upgrades, and management team strengthening into the investment thesis from day one are best positioned to outperform.

Sector preferences are shifting decisively toward Technology, Fintech, and Logistics (60% each), with Uzbekistan emerging as the region’s dominant investment destination (73%), driven by 7.7% GDP growth in 2025 and accelerating reforms.

EY-Parthenon intends to publish this report annually, tracking the evolution of investor sentiment and ecosystem development across the region. We invite PE and VC professionals, institutional investors, founders, and advisors to engage with the findings – and particularly to join the dialogue on exit readiness, target preparation, and value creation as the most actionable levers for the region’s development.

To participate in the next survey or discuss the findings, please contact:

• Timur Pulatov – Timur.Pulatov@parthenon.ey.com
• Zhansaya Ichshanova – Zhansaya.Ichshanova@parthenon.ey.com
• Dilshod Hamraev – Dilshod.Hamraev@parthenon.ey.com

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