Private Media Investment ‘Has Reached The End Of The Trough’

The media sector is now out of the crunch, as far as private equity investments in to the sector go, according to financial advisory BDO.

Its poll of 50 UK private equity funds and 100 P.E.-backed businesses says 2010 will see a “resurgence”

— 24 percent of private equity houses say media and telecom is amongst their top three targeted investment sectors this year.

— Only eight percent say hi-tech companies are in their top three.

Nine out of 10 P.E. firms say they will make more investment this year – and 40 percent of them plan “significant” increase.

— The investment firms are reckoning on a big upturn in exits in 2011 and 2012 – “the next 18 months heralds a flurry of exit activity“.

From the survey: “Underlying this appetite is a broad consensus that 2010 will be a good time to invest and to deploy the extensively uninvested funds that were raised prior to the downturn.”

BSO’s technology, media and telecom head Julian Frost: “The outlook for TMT investment is improving rapidly and there are plenty of enthusiastic private equity investors out there who need to increase their rate of investment.”