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Private equity has been expanding quickly in the region, but is beginning to be affected by the global credit crisis, according to the C5/Squire Sanders CEE Private Equity Report, 2008. Squire Sanders, a US-based global law firm, and C5, a European conference service company, surveyed more than 100 fund managers, lawyers and other industry professionals in October 2007. The survey found that though CEE fund managers were confident that banks would continue lending, they were concerned that current liquidity problems might affect lending conditions, pricing and deal-processing speed. The three industries most targeted by private equity in CEE are media/telecommunications, financial services and consumer. But a sizable number of PE firms target technology. Also real estate, energy and natural resources attract investor attention. Nearly all the responding firms said that, after an acquisition, they had replaced the chief executive, financial officer or other key members of management. Portfolio companies are more likely to be sold to another company, especially a foreign company, than to be floated on a stock market.

The report is available here: (Due to the length of the URL, please copy and paste into your browser.) http://www.ssd.com/PDFredirection.asp?eid=djennings@ssd.com;ssdnewsletter@ssd. com&did=http://www.ssd.com/reprints/SurveyReportCEEPrivateEquity122007.pdf