Editorial 2010

The markets are still under the impact of the financial crisis. Nevertheless, it can already be said: The private equity business model has shown remarkable resilience in very difficult times. It goes without saying that a global shock of this dimension will not leave the investment portfolios of private equity managers unscathed. The extension of the exit horizon for many investors, the temporary end of high liquidity in the debt market and a more difficult economic environment for portfolio companies are facts. These are also reflected in the sometimes high write-downs that the funds had to make, as well as in the discounts at which fund units and loans were traded on the secondary market. However, the decisive factor for future success is how the effects of the crisis were dealt with overall.

While some large and well-known companies, as well as many SMEs, slid almost unchecked into (near) insolvency, many private equity managers rolled up their sleeves at the first signs of the emerging crisis and made their investments fit for the new environment - and can now already look ahead again.

This has shown that private equity companies are particularly well placed to implement the necessary restructuring measures quickly and consistently and to hold their own through good corporate governance even in very difficult market conditions. While many investors and politicians are still puzzling over whether the crisis is really over, private equity investors are already starting to reap the benefits of the new environment.