EVCA: Considerable drop in investment and divestment levels
23 June 2009
Private equity fundraising, investment and divestment activity fell during the first quarter of 2009, as investors focus on managing their existing portfolios and commitments. The data, released by EVCA, also shows venture capital and financing for SMEs.
Private equity fundraising, investment and divestment activity fell during the first quarter of 2009, as investors focus on managing their existing portfolios and commitments. The data, released by EVCA, also shows venture capital and financing for SME’s proving more resilient in the face of the downturn.
Investment and divestment levels continued to fall, albeit at a slower rate, with €4.6 billion invested in over a thousand companies in the first quarter of this year, compared with €7.8 Billion in 1145 companies in Q4 2008 – nearly half that of 2008.
Hanneke Simits, Chair of EVCA’s investor Relations Committed, said: “These numbers reflect the full force of the economic downturn that private equity model in its ability to hunker down and help companies survives difficult times. Nevertheless, in a very difficult quarter the industry still invested near €5 billion in European businesses”
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