VCs upbeat despite economic gloom

The private equity confidence survey, carried out on the Big Four firm’s network of 770 VC clients, shows 68% of those questioned believe 2003 will be a better year for private equity than 2002. And 61% are expecting an increase in deals within the next six months. The survey found the most popular investment sectors are support services and healthcare.

But this optimistic outlook comes despite a majority of 53% believing there will be no improvement in the economic climate, and 40% who expect conditions to deteriorate further.

Private equity partner Mark Pacitti explained the seeming contradiction by saying that, because of the weak economy, those who need to sell subsidiaries to raise funds are lowering their prices and driving the market revival.

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