Our Private Equity Group is considered the go-to practice for complex, bespoke and firm-defining transactions. With clients ranging from the world’s leading institutional asset managers to prominent middle-market private equity and growth equity firms, we offer comprehensive advice to general partners, limited partners, co-investors and other equity stakeholders, as well as portfolio companies, lenders and financial sponsor groups. The depth and continuity of our relationships across the industry gives us a nuanced understanding of each client’s objectives and allows us to provide seamless, efficient counsel across the investment lifecycle.
September 2020 Private Equity Digest
September 24, 2020 Download PDF
Interest in special purpose acquisition companies (SPACs) has exploded in the last couple of years. In this issue of Private Equity digest, we discuss the pros and cons of some alternatives for private equity firms looking to participate in these vehicles.
In market news, U.S. private equity fundraising has declined significantly since July. Total capital raised fell by approximately 87%, while the total number of funds closed fell by approximately 32%. The dollar volume of U.S. sponsor-backed exits also fell from July, declining across secondary and IPO transactions, and remaining steady with respect to corporate sale transactions, though the number of U.S. sponsor-backed exits increased slightly by 5%. In line with this last observation, U.S. sponsor-related M&A activity was up 52% and 25% as measured by dollar value and deal count, respectively. Globally, sponsor-related M&A activity declined, falling approximately 26% and 10% as measured by dollar value and deal count, respectively.