Apax Partners publishes global private equity environment rankings report “Private Equity in the Public Eye”
5 July 2007
Thursday 5 July 2007 - Apax Partners, a leading global buyout
firm, today published the 2007 global private equity environment
rankings, under the title: 'Private Equity in the Public Eye'. The
report, produced with the Economist Intelligence Unit, reviews the
private equity operating environment for 33 countries.
This is the second year that the private equity rankings have
been published, and therefore the first in which observations can
be made on whether countries are becoming more or less open to
private equity. At a time of heightened political and media
interest in private equity, the report also looks back over the
last few months and gauges the views of opinion formers in the
The top two countries in the ranking, the US and the UK, remain
constant, while Canada jumps one spot on last year's position to
replace Australia in third place. Along with Ireland at number
eight in the rankings, these countries could all be described as
conforming to the Anglo-Saxon model. They were found to offer a
stable regulatory framework, encourage market-based competition,
have highly developed financial systems and foster entrepreneurial
policies and attitudes that are likely to encourage higher levels
of private equity.
These countries have also been bolstered by the inclusion of a
risk category in this year's ranking, which has cemented the places
of developed economies at the top of the ranking and less developed
ones at the bottom. The one exception is Australia, which slips
from third to seventh on the back of a poor risk score.
Despite generally having their ranking buoyed by the inclusion
of this new rating, many other large European economies still fare
relatively badly. Germany lies in 12th place, France 15th and Italy
a lowly 25th. These economies have less experience of private
equity and, frequently, less public and policy support.
Environments that are geared towards stakeholders, rather than
entrepreneurs, also adversely affect their ranking.
The ranking is not intended as an indicator of overall private
equity activity. Inevitably the lure of large markets such as China
and India mean that firms will look to do business in these
countries even if the environment is currently challenging. Perhaps
it is more useful to think of the rankings thus: imagine how much
more investment there might be if only the environment were
Looking across the industry, there is no doubt that private
equity is fundamentally in good shape. The numbers tell us that
fundraising and returns in all private equity deal stages have
rarely, if ever, been better.
However, scrutiny of private equity is increasing even in
countries that have historically taken a benign view of the
industry. Private equity houses appear now to realise the potential
the criticism has to damage their business and have started to
react. As a consequence, there will be an increased focus on
communicating the benefits of private equity to the
NOTES TO EDITORS
Apax Partners is one of the world's leading private equity
investment groups. It operates across the United States,
Europe and Asia and has more than 30 years of investing
experience. Funds under the advice of Apax Partners total $20
billion around the world. These Funds provide long-term
equity financing to build and strengthen world-class
companies. Apax Partners Funds invest in companies across its
global sectors of Tech & Telecom, Retail & Consumer, Media,
Healthcare and Financial & Business Services.
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