A leap of faith

It doesn't bode well for 2009. When interviewing for the annual European Buyout Review, many GPs in the region predicted a dearth of deals way into the first half of 2009. Others see opportunities in abundance; mostly those in the small or early-stage arena. The optimistic VCs proclaim that hard times make a good breeding ground for innovation, which investment figures back up. GPs point to the fact that returns from vintages in a downturn have traditionally been exceptional, and highlighted that a recession is a good time to restructure and refine businesses.

Nonetheless, hard times are stressful. It brings anxiety to the workplace and to the home. It puts a strain on relations with clients, colleagues and friends. The threat of unemployment is omnipresent, which the Q3 2008 figures clearly indicated, with large drops in consumer spending. It seems consumer attitudes and investment strategies alike have been reprogrammed. Flash and bling have been replaced by prudence, while leverage and moderation can once again be used in the same sentence.

Yet, tremendous funds have been raised in the Nordic region, and the drop in deal activity in the past year, although substantial, has not been as dramatic as other European countries. The only certain conclusion is that we have an interesting year ahead.

Yours sincerely,

Rikke Lilla Eckhoff

Editor, Nordic unquote"

Tel: +44 20 7484 9824

rikke.lilla-eckhoff@incisivemedia.com.

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