2005: the future is bright

VCs are confident increased deal activity will be sustained for the first six months in 2005 and secondary buyouts are expected to provide the largest source of new investment opportunities, according to The Private Equity Confidence Survey conducted by Deloitte.

Mark Pacitti, corporate finance partner at Deloitte, said: “VCs expect secondary buyouts to surpass trade sales as the most frequent exit route over the next twelve months, confirming the growing importance of secondary buyouts as an exit route.”

Despite the current wall of debt available to fund buyout transactions, some uncertainty appears to exist among VCs over the level of debt funding available for transactions going forward. This sentiment may contribute to a stabilisation at the current level of the deal flow rather than further growth.