Private equity firms suffer as deals fall in downturn
Private equity firms sold fewer European businesses last year, reflecting the "volatile" economic climate and the unwillingness of banks to provide debt financing for deals, according to the accountancy firm Ernst & Young.
There was a 28 per cent slump in the number of portfolio companies that private equity firms exited.
Sachin Date, Ernst & Young's private equity leader for Middle East, India and Africa, said: "With Europe and many other regions showing little or no GDP growth over such a prolonged period, the private equity portfolio has inevitably been affected."
While the amount of debt that banks are willing to lend to potential buyers remains significantly below pre-credit crisis levels in 2007, the accountancy firm said that European businesses have also struggled to grow profits during the economic downturn to wet the appetites of investors.
- 1 What happens to your body when you give up sugar?
- 2 Licence fee: What is the BBC charge – and how will the changes affect you?
- 3 This is what the photographer has to say about the picture of a weasel riding a woodpecker
- 4 Delhi bus rapist blames dead victim for attack because 'girls are responsible for rape'
- 5 Have sex with your iPad thanks to the new sex toy no-one asked for
'Jihadi John': CAGE representative storms off Sky News accusing Kay Burley of Islamophobia
Durham Free School: 'Creationism taught at' free school facing closure
Ukip would cut billions from Scottish budget to fund English tax cuts
Nearly 100,000 of Britain's poorest children go hungry after parents' benefits are cut
End of the licence fee: BBC to back radical overhaul of how it is funded
Ukraine crisis: Top Chinese diplomat backs Putin and says West should 'abandon zero-sum mentality'
iJobs Money & Business
£15000 - £18000 per annum: Recruitment Genius: This is a great opportunity for...
£50000 - £60000 per annum + Excellent Salary: Austen Lloyd: An outstanding new...
£20000 - £21000 per annum + uncapped commission: SThree: As a graduate you are...
£25000 - £30000 per annum + benefits: Ashdown Group: A global leader operating...