Rebound In Private Equity Uneven
Conditions in the markets have improved in the past six months, but the rebound in private equity is hardly "uniform", said Donald Gogel, president and CEO of private equity firm Clayton, Dubilier & Rice.
"Six months ago, I would say that the works were fully frozen," he said during an interview with CNBC in Davos, Switzerland during the World Economic Forum. "Six months makes a world of a difference, the markets are open. Not open in a crazy way. I think there's a lot more sensible lending and underwriting going on, but right now the markets are looking pretty good."
He went on to say that in early January this year, there was over 11 billion euros raised in Europe in the high-yield market in the second week of January. "That was months of activity earlier the year, so things are opening up a little bit."
But when talking about the economy or the capital markets or private equity, some sectors are performing better than others, said Gogel.
"Things are not rebounding uniformly across the board. Some of the consumer businesses are going to be slower," Gogel said.
Some sectors like construction also will be slower. But in areas we've been focused on like business services, you're begining to see that come back more strongly."
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