The Ukrainian Private Equity Opportunity
The Private Equity environment has been adversely effected by global economic turmoil with credit becoming a rare commodity, leading to a significant decrease in large LBO transactions.
Nevertheless, the fundamental need for Private Equity is still essentially there, as the necessity for liquidity will foster equity growth investments especially in the small and mid markets.
Price expectations will decline, giving VEK the opportunity to acquire company stakes at lower asset valuation and multiples. In addition, distressed sellers will appear on the local market, which, combined with a compelling growth strategy, can provide an attractive investment scenario for VEK’s entrepreneurial hands on approach.
At VEK, we believe that the current market environment provides a substantial upside. The Ukrainian market is structurally inefficient, lags behind the development of its neighboring economies, and due to the absence of major, international PE firms is characterized by an extremely low private equity penetration. Private equity history and statistics suggest that growth years tend to have a major influence on the funds performance and that crisis years suggest improvements and provide good foundations for the better and top performing private equity funds.
PRIVATE EQUITY FIRMS WILL INVEST MORE IN EMERGING MARKETS
VEK has all the necessary resources, networks, proprietary deal flows and knowledge to successfully exploit this exciting opportunity.
2010 global private equity watch, from Ernst & Young
20.04.2010
A year ago, there were diverging views on the future of private equity (PE). >>
MPEA calls for revised AIFM measures as volcano puts vote on hold
20.04.2010
With the Icelandic volcanic ash having put a halt to the latest vote on the Alternative Investment Fund Managers directive, preventing officials from reaching Brussels as planes remain grounded, the Emerging Markets Private Equity Association has warned Members of the European Parliament to vote with caution. >>
Mega buyout funds suffered most during crisis
13.01.2010
The largest private equity funds have been hit the hardest since the onset of the credit crunch >>
Top buyout firms eye fundraisings for new year
12.01.2010
European private equity executives are hoping that 2010 will be an improved year for fundraising >>
U.S. Private Equity Firms Raised Less Than $100B In Funds Last Year, Down 68%
12.01.2010
According to just released Dow Jones LP Source figures, U.S. private equity fund-raising closed out its worst year >>
