(1888PressRelease)
September 27, 2007 - A lack of available credit will act to slow down the European private equity market, a new report sponsored by Deloitte has claimed.
Fewer deals will be made as UK banks constrict lending in the wake of the US subprime mortgage market crisis and the near collapse of Northern Rock, research carried out by the Centre for Management Buyout Research at Nottingham University suggests.
This pattern will remain consistent for at least the next 12 months - despite the fact that the first six months of 2007 marked a record period of growth.
"Although first half numbers are really strong, we are unlikely to see the trend continue in the second half," Deloitte's Mark Pacitti commented.
"The turmoil in the debt markets is having a major impact."
Preliminary reports point to a sharp downturn in deals in the third quarter of the year, and a similar outlook for the last quarter.
However, the UK remains the largest market for private equity deals in Europe, with a €35 billion share compared with France's €16 billion and Germany's €14 billion.
Further analysis of the European private equity market could be supplied by Aranca, an end-to-end provider of on-demand, custom investment, business and economic research.
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