UK - Q1 '08 unquote" statistics reveal slowdown

The statistics, produced in association with corporate finance house Corbett Keeling, reveal that buyouts over €150m for the first quarter of 2008 are half the volume and value of the same period last year. Volume and value of buyouts below €150m fare slightly better but are still 25% down on the same period in 2007.

Of some concern to deal makers will be the statistics which show early-stage and expansion deal value down 90% on the same time last year, which suggests the downturn may not be purely or even primarily a result of constricted liquidity.

Market sentiment reflects these figures. A survey of 500 key players in the private equity and venture capital industry revealed nearly 90% believe activity levels in the upper mid-market and larger buyout segments will decrease. The news is better for the lower mid-market, where decrease in activity is expected by only 40% of respondents, with a similar number expecting no change.

Finally, the question on everyone's mind is whether we are heading towards a recession. Nearly 40% of respondents believe 'yes.' Sixty per cent aren't willing to put their eggs in either basket but only a worrying slither, around 2%, are confident enough to say 'no.'

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