PE Execs See Economic Recovery Next Year
Buyout executives are less than optimistic about an economic recovery taking place in 2009.
May 28, 2009
Energy and infrastructure are expected to be two of the hottest private equity investment areas once the economy rebounds, according to KPMG.
On Thursday, the financial advisory firm announced the results of its latest survey of 200 respondents at a private equity conference in Key Biscayne, Fla., last month.
It found that buyout executives were less than optimistic about an economic recovery taking place this year. Some 43% thought steady economic improvement wouldn't take place until 2010.
Shawn Hessing, national managing partner of KPMG's U.S. private equity group, said uncertainty continues to shadow the private equity market. "Our survey findings indicate that market conditions are making it difficult for private equity managers to make projections for their portfolio companies."
Respondents also expressed concerns about the regulatory and tax landscape, funding commitments and the availability of debt, according to Hessing.
More than 35% thought energy would be the most appealing industry for investment, followed by financial services, technology, healthcare and business services.
Separately, 33% of respondents indicated emerging markets, public-to-private partnerships and financial services also offered strong investment opportunities for private equity funds. In addition, 13% were apprehensive about teaming up with a government agency in a deal.
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