Buyout houses found the UK a frustrating market in 2006. There is little reason to expect a change in 2007.

Investors in emerging Europe have reaped the benefits of a rapidly maturing market over the past 12 months.

Spain was the third-busiest market for mergers and acquisitions in the world last year, after the US and the UK. Completions jumped 70 per cent year-on-year, according to Dealogic figures, boosted by deals such as the £10bn (€15bn) acquisition of UK airport controller BAA by Spanish construction group Ferrovial. Beneath the mega mergers, private equity saw its fair share of action.

Despite huge regulatory uncertainty going into 2007, and damning research that shows the region as among the worst for structuring deals in Europe, Germany’s investors are bullish about the coming year. It seems that the scale of the market opportunity skews all the odds in private equity’s favour.

The Dutch financial markets are buzzing with news that the region’s leveraged buyout record might soon be broken for the second time in less than 12 months.

The French private equity industry’s day of reckoning is fast approaching. On 6 May this year, Nicolas Sarkozy, former finance minister and long-time champion of free market reform, will go head to head with France’s first female presidential candidate, the dedicated socialist Se´gole`ne Royal.

Once you’ve read this supplement, file it away somewhere safely. It could become to the buyout executive what the May 2000 edition of Red Herring was to technology venture capitalists.