Buyout experts are predicting that more than €400bn of European private equity funds are expected to flood into alternative currencies, including US dollars or sterling, if the eurozone breaks up.

Firms are now drawing up contingency plans amid forecasts that funds will face a dramatic restructuring if the currency collapses. Funds are already writing a special clause into new fundraising documents reserving the right to switch currencies in the event that the 17-member eurozone fractures.