PE Pros See Rosy Future (but Not This Year)
Private equity firms are nearly unified in their belief that things will get better. It just won’t be this year, that’s all. Nearly 70% of respondents to this year’s BDO Seidman PErspective Private Equity Study, when asked which quarter or year they felt 2007 levels of dealmaking will return, said “2012 or later.” BDO Seidman’s study included perspectives from more than 100 respondents from about 100 funds ranging in size from $30 million to $35 billion. They’re not bullish on getting increased leverage anytime soon either; more respondents said that for their last, as well as for their next, deal, it is expected no more of the transaction than 60% would be paid for with debt. “No one expects the double dip anymore,” said Lee Duran, BDO’s private equity practice leader. “But there’s still uncertainty.”
