GLOBAL - Market conditions have made private equity and venture capital investments an attractive option, according to Bramdean Asset Management.
In an historical context, Horlick said she felt opportunities in the market were similar to those following the dotcom crash, with reduced asset prices.
"The chances are that, if these companies are patient, deals will become even cheaper. Private equity deals are likely to involve more equity and less debt than they have in the past.
Venture capital does not use leverage in any case, so should be very well placed in this environment," she said.
Overall, Horlick said she felt wider market conditions would remain difficult for the next two or three years as the effects of the credit crunch worked their way through company balance sheets.
"We have been negative about equity markets for the past eighteen months and we do not see any let up in the near future. When the effects of the economic slowdown work their way through into company earnings forecasts, then there is likely to be further significant weakness," Horlick said.
As a result, she said this underlined the need for investors to diversify their portfolios and seek greater exposure to absolute returns strategies.
The Pension Protection Fund (PPF) is consulting on proposals to charge a "risk reflective" levy for commercial defined benefit (DB) consolidation vehicles.
The funding gap across FTSE 350 schemes could be slashed by as much as £275bn if schemes look beyond traditional ways of creating value. Victoria Ticha examines how
There will be "many flavours" of defined benefit (DB) consolidators but consolidation will only be the right answer for a minority of schemes, Alan Rubenstein says.
Work and Pensions Committee (WPC) chairman Frank Field has questioned the regulator on what lessons it can learn from the experience of the Kodak Pension Plan No.2 (KPP2).