Sound advice.

What to do in a down-turn? The team at Barclays Private Equity's Birmingham office give their views.

Phil Griesbach, Director "Despite all the gloomabout recession, awell runbusiness canbecome stronger inthese conditions and be ina position to gainmarket share ormake strategic acquisitionswith the right sort of funders behind it."

Paul Harper, Investment Director "PrivateEquity isnot just about buying businesses, it's about investing, creating real value and exiting successfully. The industry was rightly cautious for newdeals in09,many portfolio businesses have improved their relativemarket position this year and stronger new opportunities are now emerging."

Andrew Murtagh, Director "Most businesses have taken the appropriate steps toweather theweak economic environment. Sadly, the reality is that the recovery phase out of recessioncanbe just as difficult, particularly when bank credit is tight and funding to support working capital growth/expansion is limited. This is a threat and an opportunity, but is something thatmust be planned for. Private equitywill be a critical source of funding for growth."

Mark Taylor, Director "With the economies ofmany other countries coming out of recession before ours, those companieswith a highelement of export business (particularly to emergingmarkets such as China, India and Brazil) should be best placed to lead theUKrecovery. Thismay particularly benefit the Midlands given ourmanufacturing base. Mid-market private equity houses are used to investing in such businesses so can be instrumental in helping this recovery."

CatherineWall, Director "Be proactive in a recession; it is an opportunitynot just tomake permanent positive changes in your cost base, but also to recruit some top quality staff and to developnew products and services that reflect changed customer requirements.You candomore than youthink."

CAPTION(S):

Phil Griesbach Andrew Murtagh Mark Taylor CatherineWall