GUERNSEY’S private equity sector can expect to see significant changes in the coming months as the market continues to adjust to the global financial crisis, it has been claimed.

Brendan McMahon (pictured), partner at PricewaterhouseCoopers in the Channel Islands, said there would continue to be opportunities but the sector would also need to take note and respond to the shifts that are likely to take place in the global industry.

He said private equity was witnessing a dramatic downturn in deal activity and was suffering from a lack of leverage caused by the turmoil in financial markets.

‘This has a major impact on the ability not only to finance larger transactions, but also creates a lack of buyers for existing portfolio companies.

‘Private equity players will need to adapt to the longer term holding period by looking at how they create value for portfolio companies.’