UNQUOTE

Bye bye buyouts

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There was a generally sombre mood at the AFIC conference this month, with previsions for the remainder of 2009 being predominantly bleak according to both GPs and LPs. There was speculation that funding concerns for certain independent GPs are becoming more pressing, with the unthinkable becoming a distinct possibility. Adding to this, LPs have stated that they will only be keen to invest once the dust has settled

The mood can be reflected in our buyout section this month, which sees only one deal of a significant size take place: Unigrains and Cerea Mezzanine have taken minority stakes in Moret Industries; a company valued at around EUR100m. The pipeline for French buyouts appears equally thin: Out of the four larger buyouts which were on the horizon, only two are now likely to be completed. The sale of Giannoni has been cancelled due to the halving of the company value, as has the sale by Indigo of Prezioso Technilor to 21 Centrale Partners, with whom an exclusive agreement had been signed. The sale of Arjowiggins' security division to 21 Centrale and IK's sale of Idex to LBO France still stand out as the most important upcoming deals in 2009's buyout market.

While GPs are quick to emphasise the need for caution, wary to avoid "catching falling knives", well-funded investors are sounding optimistic. Some are saying that the vintages this year and the next will be excellent due to the fall in prices.

Yours sincerely,

Francois Rowell

Editor, France unquote"

Tel: +44 20 7004 7524

francois.rowell@incisivemedia.com.

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