Investor unhappiness with alternatives firms has gone too far, according to analysts from JPMorgan Cazenove who have upgraded recommendations for a number of UK-listed private equity companies despite the US subprime fallout affecting buyout transactions across Europe.

Analyts said there is significant money to be made with share prices in buyout funds likely to rebound. They said: "Private equity is relatively well placed amongst levered investors as it is not a forced seller. With discounts widening there is very good value in the sector."