The Association of Investment Companies (AIC) has said in a press roundtable lunch that the private equity sector could play a part in the recovery of the UK economy by providing finance where banks cannot.
Despite being hit hard by the credit crunch with discounts for the sector currently standing at 43 per cent compared to 16 per cent a year ago, according to AIC data, the private equities industry is to see a rise in value.
HgCapital Trust and Electra Private Equity, which also attended the lunch, agreed with the AIC's outlook.
Tim Syder, deputy managing partner of Electra Partners, said: "We know that the best returns come from investments made at the bottom of the cycle and private equity is no exception."
Ian Armitage, chairman of HgCapital, said: "Private equity will play a large part in sorting the problems that the recession will create, bringing capital and expertise to the table."
F and C Investments recently warned that investments in bonds may not be as safe as equities and has said that the common perception of bonds being safe does not look at the big picture.
Outlook for private equity sector positive
Outlook for private equity sector positive
Thu, 26 Mar 2009
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