Insider Media Limited

Private equity will continue to play an important role in the local East Midlands dealmaking market in 2011, says John Garner, investment director and head of LDC East Midlands. The East Midlands Dealmaker of the Year told Insider there is still “a really strong appetite” for dealmaking in the region.

Despite the ongoing difficulties of the economy, there is healthy interest in the private equity industry to nurture and support businesses in the East Midlands, said Garner.

He said: “Although outlook for the investment market in 2011 is likely to remain challenging as we move into the new year, it should certainly continue to remain as active and equally ‘open for business’ as it was in 2010.”

Throughout 2010, Garner says sentiment seemed to pick up gradually, and overall outlook and confidence proved to be somewhat more buoyant for new investment opportunities by the calendar year end.

He added: “Going into 2011, at LDC in Nottingham, we are currently engaged in a number of conversations with businesses who are reviewing various strategic opportunities that are available to them. From this time last year, management teams certainly seem to be more willing to consider implementing growth plans.

“From a local perspective, we have also seen evidence that the East Midlands’ adviser base is now more active on new opportunities, and so in turn, we are hopeful that this will help to further leverage deal flow throughout 2011.

“While it is fair to say that the availability of capital from the traditional banking market is undoubtedly more limited in a challenging economic environment, a good business at the right price will always attract equity investment interest and there is no evidence that this trend will be any different this year than it has previously.”

Garner added that 2011 could also bring more development capital deals as entrepreneurs see the opportunity to expand but find the banking market continuing to be difficult.