Eighty percent of executives at private equity firms believe the credit crisis has ended or will end before the second half of 2011, according to professional services firm Rothstein Kass
Also, 77% anticipated an increase in regulation of private equity firms over the next year, and 66% are raising new capital this year. Nearly 71% of respondents said they believed it would be more difficult to raise capital in 2010 than in 2009.
Fifty-one percent expected increased IPO activity in relation to portfolio companies in 2010, 30% expect IPO proceeds to be used primarily to fund future transactions, and nearly 56% believe IPO proceeds will be used primarily to strengthen other portfolio companies.
Among other results:
• 65% anticipate downward pressure on fees in 2010;
• just less than 77% believe it will take longer to sell portfolio companies in 2010; and
• nearly 39% expect private equity firms to more frequently form consortia to execute large transactions.
The survey of executives at 199 private equity firms was conducted between January and April, Rothstein Kass spokesman Rob Solomon confirmed in a telephone interview.