Back to the status quo ante
An interesting survey hit my desk last week: Corbett Keeling’s taking of the temperature in private equity. Based on 500 interviews with private equity johnnies, Jim Keeling describes conditions as “surprisingly buoyant”, suggesting that 2008 is not so much 1929 all over again, but 2006. In other words, it’s not 2007 but it’s still good.
Here are some of the highlights from the survey:
- There’s a balance of practitioners expecting activity to increase (against decrease) over the next twelve months;
- The survey was in June and confidence has improved dramatically since March, and most dramatically in the market for large buyouts;
- Asked whether entry multiples were heading up or down, no one said up. Asked whether the market for debt is easing, no one said yes.
So, things are poised, pricing is coming down - and, with or without the banks, deals will still be done.
Like us, Corbett Keeling are left feeling a little perplexed by what their own data tell them - “things are OK” -, and what the market mood suggests - “we’re all doomed”. We remain among the optimists.
