New media investors stay optimistic

Nearly nine in 10 investors in the media and telecoms industries will maintain or increase their spending this year despite fears about the US credit crunch.

Some 86 per cent of respondents to a Cobalt survey will make the same number of investments or more. And 95 per cent say the size of each investment would grow or remain constant.

Mobile software is also a popular sector for investment - sparking the interest of 62 per cent of respondents.

"The findings are encouranging and reinforce the fact that merger and acquisition activity is continuing, albeit more cautiously," said Cobalt founding partner Paddy MccGwire,.

"The private equity industry has considerable amounts of money to put to work and hence their appetite for increased activity."

But despite the optimism, investors are still wary of the potential threats of the current economic climate.

One in 10 respondents say they will be implementing measures to counteract the effects of the credit crunch. And 39 per cent are planning to exit investments later than anticipated.

Cobalt's first annual survey questioned more than 100 investors, with a combined portfolio value in excess of £40bn.