Competition at the smaller end of Britain’s private equity market is fiercest for companies valued at £50m-£150m, prompting buy-out groups to start chasing other apparent gaps in the market for both smaller and bigger firms, according to Close Brothers Corporate Finance, the financial advisers. Significantly fewer buy-out funds identified deals worth £30m to £50m as their “sweet spot”, indicating there is less competition for smaller firms, the firm said. With the credit crunch stemming the flow of new loans for “mega buy-out” deals worth billions of pounds, some bigger funds could be tempted to look for opportunities in the small to mid-market bracket.

This entry was posted by Gwen Robinson on Tuesday, August 28th, 2007 at 5:36 and is filed under Capital markets, M&A, Private equity. Edit this entry.