European private equity yet to spend €270bn worth of capital

Deployment of capital expected

City stockbroker Peel Hunt has estimated that European private equity companies have €270bn worth of unspent capital they need to invest.

"The sheer weight of dry powder, following a period of record fund raising, demands the deployment of capital," the report from the stockbroker said.  Peel Hunt anticipates there will be a focus on takeovers of quoted businesses within the UK as firms accept the new reality of financial conditions. "Potential acquirers of UK plcs have accepted that the cost of debt has structurally increased and that near-zero rates are unlikely to be seen again soon, if ever," the broker said. Private markets to face reality check in 2023 Deal volumes fell last year as rising interest rates...