The landscape in private equity has changed dramatically. In the years leading up to mid-2007, the supply of cheap credit combined with sharp increases in deal volume and competition for assets drove valuations to peak levels. Since mid-2007, however, a major reduction in the supply of credit and declining investor commitments have put a wrench on the previous dynamic. As a result, liquidity in the M&A market has fallen, placing pressure on the attractive returns that had drawn investors to the asset class. The industry is facing a period of challenge, but the prizes will be substantial for those who respond strongly; private equity investments made during the recession are likely to deliver outstanding returns on investment.

 

Service Areas