New beginnings

01 January 2010

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2010 is expected to be a better year than 2009, although the next 12-18 months will remain challenging. Even a couple of sizeable deals at year end - such as Apax's £975m acquisition of logistics firm Marken or EQT's EUR2.3bn acquisition of German publisher Springer - are likely to be exceptions rather than a trend

Such deals requiring substantial debt financing are likely to be supported by club deals or big players that have either not received government aid or have paid it back. This was the case with the long-awaited Springer buyout, where Goldman Sachs, Deutsche Bank, Barclays and UniCredit underwrote the EUR1bn debt facility.

Other signs for optimism for the year ahead are coming from the public markets. Movetis' IPO closed 2009 on a relatively high note; the pharmaceutical company raised EUR85m on the Brussels Euronext in December. The deal comes at a time when the public markets are showing signs of recovery.

Subsequently, private equity houses such as Blackstone and BC Partners appear to be planning IPOs across Europe next year, which could signal the return of another exit option. However, the quality of assets and potential upside for investors will be the determinant criteria to successfully float companies, with the slashing of Gartmore's IPO range a sign that high expectations may not be met.

Yours sincerely,

Francinia Protti-Alvarez

Editor, Benelux unquote"

Tel: +44 20 7004 7475

Francinia.protti-alvarez@incisivemedia.com.