Dr. Markus P. Bolsinger LL.M.
New York +1 212 698 3628
Munich +49 89 2121 6309
Dechert is the contributing editor of the International Comparative Legal Guide - Private Equity 2020, one of the most comprehensive comparative guides to private equity. The guide is a valuable reference source for in-house counsel and international legal practitioners, with information on the legislative and regulatory framework relating to private equity. It covers common issues in private equity laws and regulations – including structuring matters, governance matters, and transaction terms in 17 jurisdictions.
Members of Dechert’s global private equity practice provide an overview of market trends and an industry outlook for 2020 and beyond, as well as the country chapters relating to the United Kingdom and the United States.
2020 and Beyond: Private Equity Outlook for 2021
2019 was another active year for the global private equity (PE) industry. Transaction volumes and values continued at levels only slightly lower than those of 2018, despite some anticipation of a global economic slowdown in the near term. Deal multiples remained historically high in the US and Europe, driven by the same intense competition for assets that has characterised the market in recent years, itself caused by the presence of significant levels of dry powder and a relative scarcity of targets on which to deploy it. Holding periods slightly decreased in 2019, as sponsors sought to avail themselves of more favourable exit conditions before the expected onset of recession. Take-private transactions remained a significant component of market activity, especially in the technology and healthcare industries.
Read the full Dechert chapter “2020 and Beyond: Private Equity Outlook for 2021"
United Kingdom: Private Equity 2020
The most common types of PE transactions in the UK centre around leveraged buyouts (in the form of share and asset acquisitions), take-private transactions, refinancings, flotations and bolt-on transactions. Based on the BVCA (the British Venture Capital Association), the value of PE investments in the UK from 2016 up to December 2019 has consistently remained between £21.4 and £22.3 billion. While this has proved to be a strong and consistent deal flow in the UK for the past few years, buyout activity in 2019 generally increased, both on a number-of-deal basis and on a value basis. There were a number of large exits in the UK in 2019 with sponsors appearing to crystallise returns ahead of Brexit and the UK General Election in December 2019. Numerous considerations for private equity remain with the backdrop of Brexit and the consequential effects of the COVID-19 pandemic.
Read the full chapter “United Kingdom: Private Equity 2020”
United States: Private Equity 2020
U.S. private equity (“PE”) deal activity remained healthy in 2019, though it decreased slightly in terms of both deal volume and value relative to the record-setting levels of 2018, while deal activity for the first quarter of 2020 increased in both respects relative to the same period in 2019. Deal activity in the first quarter of 2020 benefited from transactions that were signed prior to the impacts of the COVID-19 pandemic being fully realized in the United States and has slowed in the second quarter or 2020. Commitments in respect of PE fundraising increased during 2019 to reach record levels but declined during the first quarter of 2020.
Read the full chapter “United States: Private Equity 2020”
Access the full guide: International Comparative Legal Guide - Private Equity 2020
Dechert was also the contributing editor of the 2019 International Comparative Legal Guide to Private Equity.