What will happen to Private Equity in 2011?

Jan 10, 2011

This is an interesting comment from the Times:  our own reputation study highlights which PE firms have the best and worst reputations among investors and the reasons why:  it will be interesting to compare the fund raising success in 2011 with the reputation data?  Watch this space...

Party’s over for private equity

How are the mighty fallen. In 2007, private equity firms raised $700 billion and bragged that any UK company, even Royal Dutch Shell, could face a private equity bid. Last year, investors put in just $225 billion, according to research house Preqin, the lowest since 2004.

With many firms now close to the end of their funds, 2011 will be a crunch year. In London, there are glimmers of hope. BC Partners — whose reputation was only slightly tarnished by its disastrous investment in Foxtons — is said to be on course to equal its previous €6 billion fund. And there are hopes that Apax, which is looking to raise €11 billion, will lead a revival this year. But even if these top firms succeed, the industry must be facing a massive shake-out The Times Jan 7th 2011