Tag Archives: Global Private Equity Report

News, Politics, Government

Private Equity: Heading For The Exits?

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By Bain Insights, Contributor

Exit activity has sputtered over the past three years, and PE funds are feeling the heat to sell aging portfolio holdings and return capital to their limited partners. But as we explain in Bain & Company’s Global Private Equity Report 2013, they may soon get that opportunity amid unmistakable signs that exit opportunities finally appear to be moving into higher gear. M&A is poised to accelerate, bringing critical strategic buyers of PE-owned companies back into the markets. Sponsor-to-sponsor transactions should continue strong in all major PE markets. And strengthening public equity markets have rebounded to pre-downturn valuations, a crucial precondition for the possible long-awaited sale of the mega buyouts through IPOs.

From: http://www.forbes.com/sites/baininsights/2013/04/18/private-equity-heading-for-the-exits/

News, Politics, Government

New Private Equity Fund-raising Is Picking Up—But So Is The Competition

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By Bain Insights, Contributor

There is a hint of something new and unfamiliar in the air on the fund-raising front this year. It’s a scent of optimism, and it’s coming from private equity fund limited partners (LPs) that are giving off signals that they may be ready to increase new PE commitments enough to jolt fund-raising out of the flat trend it has been in since 2009 (see chart). As we describe in Bain & Company’s Global Private Equity Report 2013, much of that larger appetite for private equity reflects LPs’ desperate hunger for yield that will help boost their overall portfolio returns at a time when bond yields have been at historic lows. Facing rising obligations to the retirees and institutions they were formed to help support, pension funds, endowments and other LPs are increasing their diet of PE as the asset class that will remain the likeliest to serve up supersized returns going forward.

From: http://www.forbes.com/sites/baininsights/2013/04/16/new-private-equity-fund-raising-is-picking-upbut-so-is-the-competition/

News, Politics, Government

A World Of Difference For Private Equity

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By Bain Insights, Contributor

PE investors are bracing for the familiar combustible effects that invariably follow when a plentiful supply of dry powder mixes with record levels of available debt: hot competition to land deals and higher acquisition prices. But as we describe in Bain & Company’s Global Private Equity Report 2013, two factors in particular—sharply divergent growth prospects in different regions of the world and a pick-up in sponsor-to-sponsor transactions—will give deal making in 2013 a distinctive character.

From: http://www.forbes.com/sites/baininsights/2013/04/11/a-world-of-difference-for-private-equity/

News, Politics, Government

Will Public-To-Private Deals Take Off In 2013?

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By Bain Insights, Contributor

Prospects for private equity investment activity in 2013 look better than they have since the global financial crisis. But a major breakout in PE deal making hinges on a comeback of the public-to-private deals that dominated PE’s last cyclical peak and have been so notably absent since then. Between 2004 and 2007, public-to-private buyouts accounted for 90% of the increase in total buyout deal value. Since 2007, the end of “take private” deals contributed to 83% of the drop in deal value (see Figure). Bain & Company’s Global Private Equity Report 2013 describes how recent industry and market changes are making public-to-private deals harder to pull off today. Because PE fund sizes are smaller than they were in the boom years, fewer funds have the wherewithal to absorb a mega deal on their own. PE dealmakers will need to join forces with other funds or seek partnerships with large LPs to do big deals. Rising public equity markets make it more difficult for PE funds to identify good companies they can buy at a low enough price to make the math work. …read more

Source: FULL ARTICLE at Forbes Latest

News, Politics, Government

Private Equity Is Back In Business

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By Bain Insights, Contributor

PE investment activity began 2013 much as it ended 2012—directionless and lacking any clear sense of forward momentum. The failure of deal activity to gain traction globally since the financial crisis has raised concerns among many industry observers that PE may be suffering from more than a cyclical slide. But as we point out in Bain & Company’s Global Private Equity Report 2013 those who assert that the experience of recent years defines a scaled-down “new normal” for the PE industry need to contend with several inconvenient facts. …read more

Source: FULL ARTICLE at Forbes Latest