Is it Dawn or Dusk for Private Equity?

Private equity investors saw record yearly earnings in the boom years of 2005 to 2008 as easy access to financing led to ever-larger leveraged deals. 
Then it all came to a halt with the global financial meltdown. 
In 2009, PE firms with reasonable liquidity weathered a tough year as many put their portfolio companies through rigorous restructurings. 
This year, talk is slowly turning from retrenchment to opportunity, at least in the U.S. and Asia, however, private equity managers remain concerned about the broader economic environment, particularly in Europe, where the PE market faced further contraction even before the most recent sovereign debt crisis hit.

1 comment:

Paul Bishop said...

Although PE firms in Europe and the USA may be hurting by what has happened since 2008, they will no doubt be under pressure to do deals. Either exiting or new projects.
Lets be honest, any investment over the past three years has been experiencing pain so PE is really no different.
Having said that in my own experience there are few sellers out there as all the business value has droppped as a result of lower turnovers and sometimes overvalued emerging market currencies.
And investors- whatever form they may take are under pressure to show returns......