Some areas of Central and Eastern Europe may have escaped lightly from the economic downturn, but fierce competition for scarce assets could drive up prices in 2010.  

The Ernst & Young partner on bank predictability, a possible return of the underwriting market, and the opportunity that capital markets may provide.

After more than a year of near silence, the Nordic private equity market burst into life in the final quarter of 2009. More good news could emerge in the year ahead.

The chairman and chief executive of Burdale Financial on backing stressed businesses, the role of ABL in private equity, and liquidation as the last resort.

Private equity firms jumped on the energy bandwagon in 2008 as oil prices reached record highs, but the ensuing slump saw many struggle. Oil and gas businesses are now eyeing international expansion as an alternative route to riches.

Santander’s head of UK corporate and commercial banking on government intervention, transactional banking and the value of prudent lending.

With government spending under pressure across Europe, healthcare has become a less sure-fire investment option than it appeared two years ago. Success will rely on picking a business model that offers cost savings to customers.   

The managing director of Bayside Capital on the integrated approach, “extend and pretend”, and post-recession opportunities.

The secondaries industry sensed that 2009 would be a defining year, yet deals have remained frustratingly thin on the ground. However, hopes are still high for a vintage 2010.

After a moribund couple of years, a handful of bankers are cautiously opening their doors to private equity once again.

Most venture capital houses have found fundraising a chastening task over the last 12 months as investor confidence remained at rock bottom. Hopes are pinned on 2010 being the year when the exit markets reopen their doors.  

A chastened German private equity market is refusing to let isolated signs of recovery influence its cautious outlook,
as all eyes turn to the banks in 2010.

France’s private equity community will be hoping that a large deal completed at the end of 2009 will presage a strong 2010, as the past year was the worst in recent memory.

Italy’s historic focus on minority investments has served it well over the past year, but the myriad small firms that populate the market may struggle to maintain critical mass. 

As 2009 progressed, deals have started to emerge in the British private equity market, leading to hopes for the return
of something approaching normality in 2010. 

A comparatively small decline in deal flow in 2009 – and some encouraging acquisitions – mean that the Nordic private equity industry is optimistic about the coming year. 

Despite an extraordinarily difficult year, there is real belief that better prospects lie in store for private equity in Central
and Eastern Europe. 

While other regions saw the cautious return of activity in the second half of 2009, buyouts in Benelux have remained conspicuous by their absence.  

The Spanish private equity market suffered huge falls in deal value and fundraising in 2009, but the bottom of the market is now finally in sight. 

Last year proved to be quieter than expected for many turnaround houses, as banks held on to assets and capital became harder to come by. But 2010 could still be a golden year for those firms scavenging for opportunities among the wreckage of recession.

As 2009 progressed, the AIFM directive turned from distant nightmare into unavoidable regulatory reality. The damage level is still to be finalised, but private equity firms are now resigned to their future.

Under normal circumstances, the economics of private equity make the departures of key personnel unlikely. But the events of the past 18 months have sorely tested the model, and many firms are now battling to keep the golden handcuffs on their best and brightest talent. 

Depressed commercial property prices present an opportunity for private equity firms and their portfolios. But while desperate landlords might fund an aggressive rollout of new premises, there are risks in store for companies that don’t think ahead.

The high street bookshop and local off-licence face terminal decline – and private equity firms appear to have drunk their fill of both sectors.

The KPMG partner on jurisdictional jeopardy, the “grave to cradle” approach and innovative use of TPECs.

The buyout community in Germany is taking nothing for granted following an active few months. Despite murmurs of a recovery, the outlook for private equity is far from promising.

As the global climate change summit in Copenhagen approaches, Real Deals canvasses Europe’s cleantech industry to gauge its hopes and fears for the big event.

The SJ Berwin reconstruction and insolvency partner on the lack of experience in bank workout teams, the growing importance of valuation evidence and restructurings behind closed doors.

Political intervention has cushioned France from the worst excesses of the global crash. But the region’s buyout market remains deathly quiet amid fears that state meddling may have stored up further trouble for 2010.

In the second of a series of tech-hub profiles, Reals Deals looks at what makes Paris the place to be for the French VC community.

In 2007, Real Deals research found that 48 new firms had stolen a ten per cent share of the UK mid-market. Two years and one global recession later, how have these young upstarts fared?

The senior director of Ares Capital Europe on bridging the gap between senior debt and mezzanine, the benefits of court involvement in restructurings and the prospect of new arrivals on the scene.

Interim managers with genuine turnaround experience are in short supply, but they could prove invaluable in troubled times.

While European venture capital continues to suffer from existential angst, a number of tech VCs still have capital to invest – a few even have new funds burning a hole in their pockets. Here are a handful of hot sectors that may see some of their cash in 2010.

The head of Clearwater Corporate Finance’s debt advisory team on the need for management advice in a restructuring, potential for conflict in the hybrid debt and equity model, and banks’ limitations as owners.

An asset-based lender, debt adviser and turnaround investor discuss why the ABL market has yet to take advantage of the disappearance of cash flow lending, and the promise that lies just around the corner for those brave enough to take the lead.

The UK Innovation Investment Fund is taking shape at a time when venture needs it most. But bridging the gap between seed capital and late-stage funding remains one of the industry’s biggest challenges.

But investors are sceptical as to whether deeply entrenched fee models will ever change.

The managing partner of Growth Capital Partners on the flexibility of the integrated finance model, avoiding conflicts of interest and combining an equity mentality with controlling debt.

With plummeting valuations and a dearth of available buyers, exits have been off the agenda for the past 18 months. But as pressure builds for private equity houses to generate distributions, the public markets, Asian corporates and even the occasional secondary buyout are back in their sights.

After an 18-month wasteland, venture capital is starting to dream of successful realisations once again.

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But despite its troubles, there are still promising pockets of the retail sector to brighten private equity’s mood.

The chief executive of Close Brothers Corporate Finance on the added complexities of large-syndicate restructurings, banks’ increasingly hard-line approach towards ownership and the growing intervention of the courts.

As a new troop of mezzanine players prepares to tread the boards alongside seasoned performers, Real Deals assesses the opportunities for lenders with capital to deploy – and the challenges facing syndicates where the curtain has come down too soon.

Benelux has been one of the regions hardest hit by the global banking crisis and recession, but recent deals for Waterland and IK suggest the market may be returning at last.

The founder of Investec’s ABL team on providing debt structures and not debt products, recognising when to say no and the growing phenomenon known as “delay and pray”.

Post-Lehman economic chaos has hit the UK regions far harder than many anticipated, but green shoots of recovery are starting to creep through.

Secondaries are suddenly the flavour of the month, but what exactly do this secretive bunch have to offer? Real Deals looks to uncover the strengths and weaknesses of each of the major players.

Backed by a Czech billionaire and one of Europe’s largest insurance companies, PPF Partners has catapulted into the emerging Europe big league, with plans to raise €5bn over the next five years. Mel Carvill, the firm’s president, talks to Samuel Barton.

The chief executive of Babson Capital Europe on the decline of the CLO, secondary debt trading and maximising recovery value in a restructuring.

After 12 months of unprecedented financial turmoil, we polled 500 of the industry’s top names to provide a definitive list of the most powerful people in European private equity.

The managing partner of Syntaxis Capital on mezzanine lending in a Central and Eastern Europe that has been dragged into the mire of global economic collapse.

With small deals proving the most realistic prospect in the current market, which banks should be the first port of call for a private equity house in its quest for financing?

As the first sizeable deals in two years start to seep through the cracks, which banks are really willing to consider backing big buyouts, and which are merely posturing in order to save face?

The head of European leveraged finance at RBC Capital Markets on conflicts of interest, unrealistic vendor expectations and hopes for a return of the underwriting market.

Despite the massive threat of widespread regulation, private equity is gearing up to take advantage of a financial services industry on its knees.

As boom gives way to bitter recession, buyout houses are determined to adapt to the age of the turnaround. But the transition is fraught with danger, and not all that attempt it will thrive.

The leveraged buyout has taken a battering, and for many the early-stage venture model is failing to deliver an acceptable risk/reward profile. In this environment, the popularity of growth capital investment is soaring. Here we examine four firms with very different approaches to an asset class in vogue.

The Deloitte partner on providing a buffer between lenders and sponsors, looming refinancing deadlines and innovative alternatives to traditional bank financing.

The group head of EMEA restructuring at DLA Piper on company voluntary agreements, the consensual approach and the finer points of advising on a complex retail administration.

As the balance of power shifts from GPs to LPs, deal-makers are increasingly being asked to muck in with fund administration.

Asset-based lenders have found themselves in far greater demand in recent months as traditional debt facilities have been hard to come by. But, as ever, the providers of “last resort” financing still attract negative headlines.

The drug development sector is no stranger to risk, and the credit crunch has aggravated this. But as far as investment goes, there are still signs of life in life sciences.

A sombre mood marked the eighth annual Buying Into Buyouts conference this month, as leading managers and private equity investors discussed the future of a market ravaged by the downturn.

Spain enjoyed a decade of sparkling economic growth, but this Iberian Icarus has now crashed back down to earth – and the fallout for private equity has been especially severe.

The head of ING’s new structured acquisition finance debt advisory group on covenant resets, equity
cure options and why now is the time to make the most of the downturn.

The secondaries market has been deluged with deal flow, but its leading protagonists are holding fire. A gathering of experts ponder the value of patience and prepare for an investment explosion in 2010.

The head of Bank of Ireland Global Acquisition Finance on reduced local lending, ranking private equity firms and how being part of a syndicate affects the restructuring process.

Chastened due diligence providers have been forced to revise their approach. Gone are the cheerleaders of the boom times – now private equity needs cautious, realistic analysis of new investments.

The co-founder of MML Capital Partners on avoiding conflicts of interest, taking advantage of the downturn with innovative new deal structures and why now is the time to buy.

 If a company’s supplier topples, it doesn’t take much for that company to come crashing down with it. Managing procurement risk is vital for avoiding disaster – and reaping rewards.

With the 2009 fundraising market undeniably desolate, it might be reasonable to assume that placement agents are in for a tough ride – not so, according to those on the ground.

The senior partner in the debt advisory team at PricewaterhouseCoopers on staying close to your bank, a return to the traditional pool of lenders and the looming demand for refinancing.

In a packed ceremony that defied the downturn, the eighth BVCA/Real Deals Private Equity Awards recognised the best that the industry had to offer during the challenging year of 2008. The shortlists, and in particular the winners, are a stunning endorsement of what the asset class has to offer an economy in crisis.

There’s more cooking at RCapital than its famous investment in Little Chef – this turnaround investor has all the right ingredients as it prepares to raise its first LP fund.

The fall of BoSIF might suggest that integrated finance has hit the ropes, but after a tactical review, the much-maligned model may yet make a comeback.

The founding partner of Kreos Capital on the equity-versus-debt debate in VC, why the venture debt model continues to lag in Europe and the prospects for a recovery led by entrepreneurs.

When Western economies first began to suffer, investors flocked to Central and Eastern Europe. But the region once vaunted as private equity’s remedy for recession is now battling its own financial collapse.

Should the UK government pick up venture firms thumbing a lift on the fundraising trail?

Two of Hawkpoint’s debt advisory team on the complexities of restructuring syndicated debt, how private institutions could help restore lender confidence, and creating a meeting of minds between borrowers and banks.

A classic defensive sector, healthcare is one of the few areas of the economy that private equity firms and bankers are still willing to contemplate. But following a handful of high-profile collapses, its vital signs are looking a little less strong.

The head of acquisition finance for Lloyds Banking Group on having the government as a stakeholder, pressure to repatriate and maintaining relationships when the going gets tough.

The banking industry’s great love affair with private equity ended in an acrimonious break-up. Both sides must now work hard to rebuild their relationship as a true marriage of
equals that can stand the test of time.

The head of UK direct investment at ICG on the importance of local knowledge as the banking system repatriates, investing in the secondary debt market and the pockets of opportunity ahead.

Spreading risk does not eliminate risk, and funds of funds, once deemed the safe route into private equity, are now showing some serious signs of wear and tear.

Volatility in the currency markets couldn’t have come at a worse time for the private equity industry. International funds are facing unprecedented risks just as declining cash flows and scarcity of capital are putting the model under strain.

The Nordic region has witnessed some of venture’s biggest success stories, but local firms still have a challenge on their hands.

Altor and Bure’s acquisition of nationalised investment bank Carnegie has provided
a rare moment of excitement in an uncommonly quiet Nordic region.

The Venture Structured Finance managing director on competition from the clearing banks, valuing assets in a downturn and taking ABL into the mainstream.

Investec’s head of debt advisory on managing expectations, the advantages of stapled finance and coming clean with your bankers before it’s too late.

News that ICG’s bad loan provisions have rocketed is proof that mezzanine is not immune to recession. But with money in their pockets and an expanding market opportunity, mezz houses could still come out of the credit crisis on top.

Venture capital has historically involved the long-term commitment of individual VCs, or groups of VCs, to the growth of a promising early-stage technology business, right through to the realisation of that investment in a trade sale or IPO.

Exclusive - SCM Terms and Conditions survey: GPs resort to desperate measures as LP capital dries up.

As the corporate bloodbath begins, turnaround specialists are searching for those businesses still worth saving.

Clydesdale & Yorkshire Bank’s head of corporate and structured finance on relationship banking, tightening terms and the green shoots of recovery.

Italy defied the credit crunch in 2008, almost doubling private equity investment. But a precarious economy still spells trouble for the year ahead.

The bankruptcy of one of its member nations is just the tip of the iceberg as the credit crunch strikes in the Nordics.

After a long wait, turnaround specialists are sifting through the economic scrapheap and starting to rebuild value.

Old heads and hardy houses will be key to surviving 2009, or maybe even cashing in on it.

Emerging Europe’s buyout industry is not immune to Western woes, but resilient economic growth means private equity prospects remain strong.

Spain’s ten-year construction bubble means recession has hit hard, but a spate of new local houses are keeping the faith

Deal flow all but dried up in Germany during a disastrous final quarter of 2008, but there are encouraging signs that the worst might just be over.

A conservative credit environment means France has avoided the worst excesses of the crash, but 2009 will still be a tough year for French private equity.

The Benelux is renowned for punching above its weight. But a poor prognosis for deal flow and an ominous regulatory threat could thwart this small region’s big ambitions.

With pressure coming from all sides, European private equity needs to keep its head and focus on foraging for a new breed of lucrative opportunities.

On 21 November, the cream of Europe’s private equity industry gathered in Paris to celebrate the best exits, fundraising efforts and advisory work of the past year.

The secondaries industry is faced with a deluge of deal flow as distressed investors look to offload – at any cost.

The advent of “managed defaults” has shifted the balance of power in LPs’ favour. Investors now find themselves in the unprecedented position of being able to dictate private equity terms.

Although life sciences is well placed to withstand the recession, early-stage money is draining from the market and exit opportunities are receding

Cleantech was last year’s star turn for European venture capital. The next 12 months will be challenging but this is the asset class’s chance to show that it’s no bull market flash in the pan

Despite a weak exit environment and pressure on portfolios, venture capitalists have a lot to look forward to this year.

Robeco Private Equity’s partner on backing cleantech early, sustainable investment and the
prospect of consolidation in the private equity industry.

As the brakes are applied to the global economy, the way in which private equity firms value their portfolios is increasingly being called into question.

Altius Associates’ partner and head of Europe on the advantages of segregated mandates, the downside of mezzanine and the prospect of a private equity share-out in Europe.

There may be a stigma attached to interim managers, but as the economy comes under fire, troubleshooters will increasingly be required to bail out distressed private equity-backed companies.

The next 12 months will be littered with distressed opportunities, but generalist private equity firms have a lot to learn about the complexities of buying out of administration.

AXA Private Equity’s head of fund investment on the dangers of too much diversification, the benefits of staff turnover and why, for him, venture investment just can’t work.

Price volatility and geopolitical uncertainty have seen most private equity firms steer clear of oil and gas investment in the past, but as deal flow in other sectors hits the wall, buyout
houses are eagerly speculating in the hope of striking it rich.

A conservative credit environment has protected France from the worst of the global banking slump. And while bigger deals have been put on ice, small cap players are preparing for a busy time ahead.

As cash flow lenders retreat to nurse their wounds, the ABL industry is preparing to advance. But a lack of standardisation and a fear of the unknown mean private equity must still be convinced.

The chief executive officer of Pomona on black-hole vintages, the natural life cycle of private equity managers and the schizophrenic nature of mezzanine.

A combination of readily available cash and a hands-off attitude make specialist LP co-investors the ideal partner in the debt-starved days ahead.

The fallout from TPG’s ill-starred investment in WaMu has made PIPEs a dirty word, but that hasn’t stopped a steady stream of new teams from specialising in private investment in public markets.

Germany was considered one of the most promising markets post-credit crunch, but the latest round of banking misery has put the potential of the Mittelstand back on hold.

SVG Advisers' director of private equity on being sceptical about distressed managers, embracing secondaries and why he likes a GP to show passion.

The founder of Conversus on avoiding the pitfalls of listed private equity, the value of co-investment and why he still has faith in big buyouts.

Benelux has been hard hit by the take-over of one of its largest banks. How long can the mid-market insulate the region’s private equity industry from the credit crunch, asks Vicky Meek.

At a time when good news in private equity is a scarce commodity, Real Deals profiles four firms putting their faith in the industry’s future.

The co-founder of Access Capital Partners on new shareholder Nmás1, the value of investing at a first close and why she is pleased GPs now have time to stop and think.

The liquidity freeze has hit London hard. But the regions are still open for business, reports Nicholas Neveling.

Helen Steers of Pantheon Ventures on the shifting boundaries of the mega market, walking away from a manager with succession problems and continental quality control.

As the British public gets behind its athletes in Beijing this month, UK private equity firms are also under starter’s orders. Buyout houses targeting everything from construction and hospitality to recruitment, software and plumbing are preparing to compete for the Olympian opportunities presented by London 2012.

With in the region of $2.1bn of commitments planned this year, Hanneke Smits of Adams Street Partners on emerging markets, European venture and blind pool risk.

As venture veteran Kennet closes its third fund on €200m, it is leaving its early-stage legacy behind.

For some they represent a lifeline, for others a threat. Either way, as oil prices continue to soar, sovereign wealth funds are here to stay, says Dennis Turner, chief economist at HSBC.

As more onerous reporting requirements combine with recession-induced cost pressures, fund administration providers are stepping forward from the back office.

Capital Dynamics’ John Gripton on the dangers of strategy drift, a bright future for European venture and getting the timing right in Asia.

The UK government’s Decent Homes Standard has created a deluge of deal flow. But as private equity firms pile into social housing, the best opportunities may have already passed by.

With more than $6bn in private equity programmes, SCM’s Stefan Hepp is bullish on the mid-market, lukewarm on mezzanine and sees no improvement in European venture.

VCT managers frustrated by Gordon Brown’s rule changes are embarking on the LP fundraising trail. But juggling the two asset classes is fraught with conflicts of interest –
and the transition can be treacherous.

With €1.6bn under management, executive director Christophe de Dardel is long on infrastructure, sustainable investment and emerging managers.

Head of private equity Billy Gilmore and investment director Mirja Lehmler on access, emerging managers and arrogant GPs.

With $113bn of leveraged loans yet to unload, lenders’ fire sales are gathering pace. And with limited fresh debt for new deals, private equity firms are proving happy to lend a hand.

The outgoing EVPA chairman talks about private equity’s cynics, the evolution of venture philanthropy, and why investors should not hide their charitable activities.

The world of itinerant luxury in which many buyout executives live is somewhat at odds with environmental responsibility. But corporate, as well as political and social, pressure is causing many to think again.

The seventh Real Deals/BVCA Private Equity Awards recognised the best that the industry had to offer during 2007.

The worst financial crisis in decades has coincided with a private equity fundraising bonanza. Priority number one is putting capital to work. Are take-privates the answer?

A Central and Eastern Europe strategy is this year’s must-have accessory. Whether
there are enough deal opportunities to go around is another matter.

With a deteriorating macro outlook and rigorous bank demands, few investors consider specialist due diligence a box-ticking exercise.

The fund of funds sector continues to increase in popularity – but convincing pension funds to invest in private equity remains a problem in Europe. 

The venture capital industry has struggled to get started in Eastern Europe’s fragmented markets. But in cash-rich, high-tech Russia the foundations for a new venture capital hub are being laid.

Forecast: sudden showers followed by sunny spells. Outlook: bright. Nordic investors are some of the happiest in Europe.

Six private equity placement agents make their predictions for the future of fundraising.

Buyouts make big returns for private equity firms – this much we know. But if you want to avoid another year of political and public criticism, it’s time to look beyond your wad.

It may require expert knowledge, but while mega-deals remain off the agenda, more private equity investors are turning to property.

The Walker review, published last week, has provoked criticism, much of it conflicting. That suggests Sir David has struck a reasonable balance.

Through recession and boom James Greenbury has been at the unglamorous end of private equity: street cleaning, couriers, post rooms. Now chief executive of
Candover-backed DX Services, he comes clean on what makes blue collar business services work.

The days of the quick flip are over. As the effects of the credit crunch continue to be felt, your nearest exit may be behind you.

Germany has been the best country for big buyouts in Europe of late. While the market
is in temporary shutdown, opportunities remain vast.

France, like everywhere else, has seen big buyouts dry up as a result of the global credit crunch – and an estimated €10bn of leveraged loans remain unsyndicated. Even the mid-market is lacking that je ne sais quoi.

In venture capital’s lean post-bubble years, one organisation consistently supported the industry – the European Investment Fund. Now conditions have improved dramatically, it is seeking to branch out.

Despite rising activity levels and deal sizes, the UK’s regional markets remain idiosyncratic.

After two years of searching for the perfect partner, DFJ is returning to Europe with a stake in Esprit Capital Partners...

Ford’s impending sale of Jaguar is the latest in a growing line of turnaround opportunities being seized upon by private equity

No longer an embarrassment to be brushed under the carpet, GPs are now using secondaries deals as leverage to raise their next funds.

A wave of western private equity investors are entering the EU’s eastern nations. But hiring the right talent is tough, and they are being met by fully staffed domestic firms armed with billion-euro funds.

As competition heats up in Central and Eastern Europe, only the boldest investors are looking to Russia and beyond.

Reviewing the buying practices of portfolio companies is an effective way to improve efficiency.

Private equity houses agree that the most crucial aspect of any deal is management. But while the use of external due diligence specialists is growing, many are still sceptical.

Increases in government spending have created opportunities for private equity in the defence sector. However, finding niche market leaders can be difficult in an area dominated by big guns.

The proliferation of financial due diligence – particularly from vendors – has resulted in ever-increasing sizes of reports, as advisers compete to provide the most comprehensive service. But more concise documents are often more effective.

HIG is one of the many private equity firms setting up abroad yet an overseas office is not without its complexities.