Towers Watson, one of the top three gatekeepers to big institutional investors like pension funds, says it has become "more optimistic" on certain niches of the private equity market as the economy recovers - though its scepticism of mega-buyout funds remains.

In its latest Private Equity Emerges from the Crisis report, Towers said the industry had been through a difficult couple of years and the fundraising round in 2009 had been particularly tough. But now, the consultancy said, "there is money to be made if an investor is selective".