Sat, Oct 1, 2022
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Other Voices: Private equity firms battle headwinds in H1

Friday, August 26, 2022

By: Oliver Brahmst and Luke Laumann, from US law firm White & Case.

In line with overall M&A activity, US PE dealmaking in H1 lagged behind 2021 in terms of both value and volume. Total deal value of US$415 billion during the first half of the year represents a 28 percent fall year-on-year-yet this level of activity looks on track to reach the second-highest annual deal value in Mergermarket's history (since 2006), after the record-topping 2021.

A deal volume of 1,727, while 20 percent below the 2021 total, is still firmly ahead of pre-2020 activity levels. This resilience proves that a new level of US PE dealmaking is being set in the post-pandemic era.

PE firms have managed to achieve this level of activity despite more challenging macroeconomic conditions, with rising interest rates making it increasingly difficult to agree on valuations. Tighter monetary conditions also mean that GPs are finding financing more difficult for their buyouts. When facing economic headwinds, PE firms are also more likely to extend their investment periods, which may cause a slowdown in the exit market.

Yet, while an economic downturn is widely anticipated across the market, PE firms are well placed to take advantage of the investment opportunities these conditions present.

Tech deals dominate activity

The TMT sector saw the greatest level of buyout activity in the first six months of this year, by both value and volume. The number of transactions increased by ......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Opalesque Exclusive: This European mezzanine debt strategy offers equity-like returns with downside protection[more]

    B. G., Opalesque Geneva for New Managers: Mezzanine financier SIG-i operates in a relatively uncrowded space by proactively manufacturing financing solutions as an alternative to traditional debt and equity instrume

  2. Opalesque Video: Systematic Japan strategy follows the 'Keep it Simple' rule[more]

    B. G., Opalesque Geneva: For those looking to invest in the current opportunities underlying managed futures in Japan, here is a strategy that does just that, with the benefits of leverage, shorts, Big Data, proprietary technology, and academic research on market psychology. K2Q Capital'

  3. Opalesque Exclusive: Castle Hall's DiligenceExchange free Transparency Reports cover 100 managers with $10tn of assets[more]

    Matthias Knab, Opalesque for New Managers: Managers and investors can get free access to DiligenceExchange here: https://bit.ly/DXCInfo Castle Hall, the Du

  4. Opalesque Exclusive: How blockchain is helping the small guy invest in hedge funds[more]

    B. G., Opalesque Geneva: ADDX, Asia's largest private market exchange, is on a mission to democratise the private capital markets through blockchain and smart contract technology. With these technologies, the exchange can eliminate manual interven

  5. Opalesque Exclusive: Japan quant strategy uses academia as starting point of investment research[more]

    B. G., Opalesque Geneva: Shin Samurai is a thorough systematic Japan macro strategy, which takes advantage of behavioural biases by using mathematical and statistical techniques. It also relies heavily on academic research for idea generation, and combines the said research with a deep understand