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Private equity firms survive crisis

Private equity firms have proven to be dynamic, flexible and responsive in volatile markets, according to the results of Deloitte's Private Equity Survey released yesterday.

Private equity firms have proven to be dynamic, flexible and responsive in volatile markets, according to the results of Deloitte's Private Equity Survey released yesterday.

This has enabled them to respond to changing market conditions, the survey found.

"The financial crisis and declining valuations should provide opportunities for private equity firms to acquire assets at attractive prices once expectations between buyers and sellers converge," said Sean McPhee of Deloitte.

The survey found that the "de-coupling" theory - where emerging markets would "de-couple" from the developing economies - had proved to be a myth. "The credit crisis has had and will continue to have far-reaching implications for all economies, with the landscape changing forever," McPhee said.

The survey found that among investment professionals in the private equity industry, 40 percent of respondents expected the economic climate to decline, 33 percent said it would remain the same and 27 percent expected it to improve. - Sapa

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