Private equity executives are confident that they will be investing significant sums in the next year.
Private equity executives are confident that they will be investing significant sums over the next 12 months, according to a survey by accountancy firm Grant Thornton.
The survey of over 100 private equity fund directors and managers showed that 20 per cent of respondents expect to invest more than £100 million in the next 12 months, while almost 50 per cent said between £11 million and £50 million.
Mo Merali, head of private equity at Grant Thornton UK, says: ‘In the face of economic uncertainty, our private equity respondents alone are planning to invest more than £5 billion in the UK in the space of a year. More than half of our respondents see a sustainable recovery in dealflow.’
The most active sector for PE focus for the next 12 months was shown to be business support services, followed by healthcare and consumer products and services. Although almost half of those surveyed agreed that they were under pressure to deploy funds, only 27 per cent would be prepared pay above industry average prices.
Merali concludes: ‘The UK continues to provide attractive opportunities for financial sponsors. Even though the recent increase in Capital Gains Tax is frustrating for those in the private equity industry, it was not unexpected and at 28 per cent lower than many feared.’