(1888PressRelease)
September 04, 2007 - The credit crunch will not impact on the private equity sector as much as has been speculated, according to a new survey.
According to a report from Tatum, 75 per cent of chief financial officers expect that the number of firms seeking private equity will increase in the next year, while 25 per cent said they anticipated that the level of activity would level off.
Moreover, none of those polled said that they expected a decline in private equity deals.
Rich D'Amaro, chief executive at Tatum, said: "Private equity is quickly becoming the number one place that companies of all sizes are going to obtain capital."
"We are seeing a steady increase in the amount of public companies and divisions going private via private equity, and small companies continue to solicit these funds for growth purposes as an alternative to an IPO."
News of the report comes despite Home Depot this week being forced to cut around $2 billion from the agreed sale price of its building supplies division, after the buying consortium announced it could walk away from the transaction.
This development has prompted some analysts to predict that further private equity deals are now set to be subject to similar renegotiation.
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