Listed Private Equity Firms Optimistic About 2010 - LPEQ

Harriet Davies

2 March 2010

After a challenging 2009 listed private equity managers are optimistic about 2010, according to a new survey by LPEQ, a group of 17 European-listed private equity member firms, in which 100 per cent of respondents said they expect this year’s investment environment to be better than last year’s.

After 2009’s poor fundraising performance, 27 per cent of respondents think this year will be better than the last three for new investment, while 73 per cent at least expect 2010 to be better than 2009.

On the state of the credit markets, when asked to what degree the availability of debt would hold back private equity companies’ ability to make new investments this year, 55 per cent said it would be easier this year than last, while 36 per cent expect it to be much the same.

Investment activity is expected to pick up as a result of better visibility in the market and a return to more consistent pricing expectations between buyers and sellers, LPEQ said in a statement, adding that pricing in the secondary market is also improving, potentially allowing more scope for asset sales.