Defying logic

01 March 2008

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'Crisis' is perhaps too harsh a word to describe the current financial picture. There are certainly less mega-deals, but they are always fairly lumpy. The real engine of growth in Southern Europe is at the mid-market level, where although activity has slowed down a bit, it still remains robust

For example, when it comes to fundraising, LPs are being more selective and cautious. But where the general expectation is for newcomers to encounter more problems than veterans, the reality confronts us with cases such as Miura, which managed to raise a fund close to EUR900m in size.

Similarly if we consider dealflow, the situation is not as dire as a 'crisis'. Indeed, industry specialists in the region have reported a 'healthy' mid-market segment. Projections indicate that opportunities should be arising from secondaries and funds coming to maturity over the next couple of years.

Competition for these deals could, however, be tough given the entry of new players into the arena. This could mean a shift towards development strategies targeting trade sales as exit routes.

Regardless, crises are a necessary part of the cycle, as they push change. Times such as these allow us to reconsider priorities and procedures and in the end they enable growth and improvements to take place.

Yours truly,

Francinia Protti-Alvarez

Editor, Southern Europe unquote"

Tel: +44 20 7004 7476

francinia.protti-alvarez@incisivemedia.com.