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European institutional investors predict increase in private equity exits

European institutional investors have predicted a significant increase in private equity exit activity over the next six months, according to a report by business advisor RSM Robson Rhodes.

The exit poll reveals that 50 per cent of institutional investors believe the number of private equity exits will increase despite tough market conditions.

In addition, 79 per cent of respondents expect to see an increase in secondary buy-outs with 65 per cent believing that an increase in secondary buy-outs is a good thing for institutional investors.

‘This research delivers some interesting results, and reveals that investors are less sceptical about the future of exits that we might have expected,' said Sukhbinder Heer, head of corporate finance at RSM Robson Rhodes.

‘In particular, we were surprised that institutional investors are supportive of the secondary buy-out as a valid form of exit, which in a weak M&A market is positive news for private equity firms seeking to exit from portfolio investments.'

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