Large deals are back in Benelux

While the small- and mid-size deal activity has remained relatively styatic since the beginning of the year, the upper end of the market suffered a blow from the crunch. However, since the end of June, large deals are re-appearing. Last month saw two headline-grabbing exits with the EUR750m ABX Logistic sale by 3i and the EUR1bn InterGen trade sale by AIG. July also brought two deals above the EUR700m mark: the TMF acquisition by Doughty & Hanson and the Labco deal. The company raised EUR728m both from a consortium led by 3i and banks. These transactions give the region a new dynamism that will hopefully continue into the second half of the year.

The credit crunch may have stripped private equity of its cheap-debt advantage, but it still has its competitiveness; for this is a quality inherent to its survival in the sector (see feature page 14). The record funds raised in the past couple of years not only means that many GPs still have the financial muscle, but also the pressure to deploy capital.

In the waiting game of price (re)adjustment, patience and thoroughness have become paramount. These are exciting times - though perhaps more unnerving for some than for others; without the solace of financial engineering and premiums private equity can go back to doing what it does best and generate real value and growth.

Yours sincerely,

Domitille Lainey

Benelux editor, unquote"

Tel: +44 20 7004 7475

domitille.lainey@incisivemedia.com.

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