Private Equity Will Form Part of Growth Solutions ; for Some People, Private Equity has Played a Role in the Economic Difficulties. However, As Neil Meredith, Corporate Finance Partner at Kpmg in Birmingham Explains, It has a Role to Play in the Recovery

Summary

---

For some people, private equity has played a role in the economic difficulties. However, as Neil Meredith, corporate finance partner at KPMG in Birmingham explains, it has a role to play in the recovery Private equity like many other parts of the UK economy is feeling the effects of the recent global economic slowdown. The recent recession was largely caused by over-lending to the US subprime market which started to unwind when interest rates rose and households started defaulting on their debt, which led to a freeze on interbank lending and ignited fears of an economic downturn.

At this time private equity had significant funds they were looking to invest. However with the liquidity difficulties in the market, there was limited support from debt providers who were fighting for their survival. As a result, activity eased off and private equity houses focused upon managing their portfolio through a difficult period. Indeed, it is worth noting that while there have been corporate failures of private equity backed businesses, these were largely deals done at the top of the market with overleveraged structures which could not withstand the speed and scale of the downturn.

See the full content of this document

Extract

---

Private Equity Will Form Part of Growth Solutions ; for Some People, Private Equity has Played a Role in the Economic Difficulties. However, As Neil Meredith, Corporate Finance Partner at Kpmg in Birmingham Explains, It has a Role to Play in the Recovery

While the global outlook remains difficult, we are seeing private equity activity returning and as a result...

See the full content of this document

---