Private equity faces shake-out

Gulf private-equity firms could be forced out of business as investment deals dry up after the global financial crisis.

Fund managers say a shortage of available credit means it may not be until the first quarter of next year before there is a significant pickup in acquisition activity.

“The situation that exists today is nothing short of a crisis for the private-equity industry,” said Zulfi Hydari, the co-founder and managing director of HBG Holdings, based in Dubai and Jeddah.