{"id":16913,"date":"2010-07-27T08:01:15","date_gmt":"2010-07-27T12:01:15","guid":{"rendered":"http:\/\/www.hedgeco.net\/news\/?p=16913"},"modified":"2010-07-27T08:04:51","modified_gmt":"2010-07-27T12:04:51","slug":"hedge-fund-study-managers-see-credit-crisis-winding-down","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/07\/2010\/hedge-fund-study-managers-see-credit-crisis-winding-down.html","title":{"rendered":"Hedge Fund Study: Managers See Credit Crisis Winding Down"},"content":{"rendered":"

New York (HedgeCo.net) – Approximately one-third of private equity firm managers believed that the credit crisis was resolved in 2009, while an additional 10 percent predicted that market weakness would dissipate before the second half of this year.<\/p>\n

In total, more than 80 percent of private equity professionals surveyed suggest that the credit crisis has ended or will conclude before the second half of 2011, according to “Private Equity in 2010,” the latest research report published today by international professional services firm Rothstein Kass.<\/a> The report includes the findings of a survey of 199 private equity firms conducted during the first and second quarters of 2010. Roughly 60 percent of survey participants reported assets under management of less than $50 million, with the balance of respondents indicating assets under management of $50 million or more. Participating firms were polled for their views regarding investment opportunities, exit strategies, and the current regulatory environment, among other topics.<\/p>\n

“Even during the worst of the credit crisis, many private equity firms maintained ample capital for deployment, but most found it extremely difficult to complete deals. At the same time, mounting liquidity concerns compelled many business owners to pursue a potential sale. In many instances, discrepancies between the owner’s perceived value and the price that potential acquirers would pay, kept private equity capital on the sidelines. With lending again less restricted, this gap has started to narrow leading to renewed activity. This has compelled some observers to diligently monitor the private equity industry for news of the next megadeal as a potential harbinger of better days ahead. However, activity among small and mid-sized private equity funds is perhaps a better measure of the sectors improving health and could indicate the start of a sustained recovery,” said Tom Angell, head of the Rothstein Kass private equity practice and Principal-in-Charge of the Rothstein Kass Commercial Services Group. “To compete effectively with multi-billion dollar funds while syndicating risk, smaller firms will be more likely to pursue club deals for larger acquisitions.”<\/p>\n

“Private Equity in 2010” was co-authored by Russ Alan Prince, a leading authority and counselor on private wealth, and Hannah Shaw Grove, a widely recognized expert on the behaviors and finances of wealthy individuals. Insight into the statistical results was provided by the principals and professionals of the Rothstein Kass private equity practice.<\/p>\n

Some findings include:<\/p>\n