European PE had “very strong quarter”

Private_equityPrivate equity saw another quarter of nearly 4% returns, according to one index, which showed that European investments benefitted from a weaker dollar.

The State Street Global Exchange Private Equity Index ended the second quarter of 2017 with a return of 3.96% globally, which follows the 3.95% return in the previous quarter.

Even without the dollar boost, European funds returned 3.72%, outperforming US funds in local currency terms.

But some private equity firms have been slow to make investments.

Anthony Catino, managing director in State Street’s alternative investment solutions business, said: “Private equity fundraising has been increasing in recent years. However, firms have been slow to deploy their capital in the first half of the year due to delays in the US tax reform and political uncertainty.” 

He added that this uncertainty “may create opportunities for buyout funds”.

©2017 funds europe