The year that was 2010: Economy fears dampen slow recovery

All this week, unquote" takes a look back at the key events in the year that was 2010.

January

The year began with European economies slowly pulling themselves out of recession. While it seemed the worst of the financial crisis - which hit in late 2008 and caused economic devastation well into 2009 - was over, there were fears that the weak GDP growth seen in Europe's major economies could collapse again, prompting a double-dip recession.

There was also great concern over the costs of bailing out the banking industry, which had left many countries weighed down with substantial debts. As we now know, this would turn into a full-blown sovereign debt crisis, and continues to trousoutherble many countries to this day.

In the industry, the restructuring of estate agent Foxtons, acquired by BC Partners in 2007 for over £350m, saw the firm lose much of its stake to the firm's lenders. A poor start to the year for private equity no doubt but, while restructurings continued to hit headlines throughout 2010, the scale of insolvencies was far lower than some had predicted.

February

Deal activity picked up in February, with a number of large deals completing. While the level of market activity was far from that seen in the boom years, the slow return of larger buyouts suggested debt markets were finally beginning to open up.

February was also the month when tensions between Terra Firma and Citibank became very public. Terra Firma boss Guy Hands vocally slammed the bank while negotiations over the future of troubled music firm EMI were ongoing. The feud became increasingly bitter as the year went on, eventually being heard in a US court.

Economic worries were heightened when Germany, one of the first European economies to emerge from recession, saw its recovery falter with flat GDP. Private equity in the country also appeared to stall, which much of its activity taking place in the venture space.

March

Speculation that fundraising was beginning to see a post-recession revival grew in March after several funds closed with relatively impressive numbers. Northzone Ventures proved that LPs did still have an appetite for venture capital, holding a first close of its most recent fund on €90m, just €60m of it final target. Even more impressively, Gimv was able to close its Gimv-XL vehicle slightly above target on €609m.

Large deals were hitting headlines once again, with Cinven's acquisition of medical diagnostic company Sebia. Cinven acquired the firm for €800m in France's second buyout worth over €500m in as many months. While such deals would barely have raised an eyebrow in the boom years, in 2010 they suggested a slow recovery in debt markets and buyout activity.

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