Divide to conquer

Two new committees Global Buyout and Mid-Market join the existing Venture and Enterprise sector committees. The move is important in ensuring each sector of the industry is as well served as it can be. The impact of the changes to capital gains tax is likely to hamper them much more than their peers in the buyout trade. Similarly, while the buyout market is cautious after a peak in its cycle, early-stage investing is on a stable ascent. There were 129 early-stage deals in 2006, with a total of £400m invested in 2007, compared with 62 deals and total investment of £260m in 2006 and 41 and £210m in 2005.

A four-committee entity looks set to be much more effective at dealing with the varying demands faced by the different parts of the British venture capital and private equity industry. The move reflects the change EVCA made to its structure last June when it became an umbrella for three independent groups dealing with large buy-out houses, mid-market buy-out companies and venture capital groups. The three entities now have independent boards and charge their own fees. The establishment of the Global Buyout Committee is further evidence of the fact that the likes of Carlyle, Blackstone and Kohlberg Kravis Roberts are taking 2007's political and public interest in their business seriously. Simultaneously they seem to be saying that the liquidity crisis is not frightening them - they are in it for the long term.

Yours sincerely,

Sarah Young

Senior Editor, unquote"

Tel: +44 20 7004 7527

sarah.young@incisivemedia.com.

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