The dearth of private equity retail deals looks likely to continue, but there is still scope among mid-priced, fast-growing businesses.

That was the view put forward by Roger Holmes, managing director of Change Capital Partners and former Marks & Spencer chief executive, in a Retail Week session that explored the outlook for private equity.

“It will be tough, but this is a great time to invest in a specialist, mid-market brand. For those well-regarded, profitable brands with growth stories, private equity represents a relatively safe home,” said Holmes. He referred to the sales of Kurt Geiger and Agent Provocateur as cases in point.

“These types of businesses have an entrepreneurial spirit that has brought them to where they are now and have the impetus to grow it to the next stage”, he said.

But, he added, there will be no margin for error. “It’s a Darwinian process and not all will survive. For those that deserve to succeed, a solution will be found.”

However, the returns of the larger deals could be as far as two years away. “So there will be no private equity safety net when share prices fall,” said Holmes.

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