FT: Private Equity had great 2H09 - Spear's Magazine

FT: Private Equity had great 2H09

Private equity is emerging from the wreckage of the financial crisis in better shape than many sceptics predicted, with a resurgence of dealmaking over the last six months likely to keep gathering pace, according to new research.

Private equity is emerging from the wreckage of the financial crisis in better shape than many sceptics predicted, with a resurgence of dealmaking over the last six months likely to keep gathering pace, according to new research.

While some analysts have written off private equity as a victim of the credit crisis, Ernst & Young will this week publish one of the most bullish assessments of the buy-out industry’s prospects since the crisis began.

In its first global private equity report, E&Y points to an 88 per cent year-on-year rebound in the value of buy-outs in the past six months, driven by a thaw in debt markets, a nascent economic recovery and a rally in stock markets.

The report says a surge in initial public offerings is helping private equity to exit companies, repay debt and return capital to investors. Last year, 53 IPOs of private equity-backed companies raised $16bn, up from $11bn in 2008.

To read the full story, visit ft.com



 

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