Spain and Italy are back in favor for buyout and other PE deals, according to Reuters. US based funds have avoided southern Europe since the debt crisis, but are now coming “back in force”.
Banking reforms, labor market reforms, better corporate balance sheets, and a plethora of non-performing corporate loans and mortgages are the attracting PE investors, as is the slightly improving economic growth rates forecast for both Italy and Spain. The amount of capital raised by fund managers is also on the rise, according to Preqin (see WSJ graphic).
It should be noted that the interest of buyout fund managers has yet to translate into deals done. Dealmaking figures for Southern Europe are still in the doldrums, according to data cited in the report. (Image source: WSJ)