From late 2009 —Wikipedia explains— the fears of a sovereign debt crisis in some European states developed among investors. Those fears have intensified in 2010 and 2011. According to a note recently published by Internet site Pensions & Investments the debt crisis is exacerbating the pressure of private equity managers active in Europe and provides a new challenge to their ability to sustain their businesses. Grant Roberts, a private equity expert considers that “The market has expected a substantial number of managers to go out of business as a result of fundraising failure since the global financial crisis in 2008. The European crisis only amplifies those risks and makes them more acute”. The managers most at risk of losing both staff members and capital are those with a poor performance. Good teams attract money easily; bad teams might never attract new business again.

Read article