International Comparative Legal Guide – Private Equity 2022
For the fourth consecutive year, Dechert is the contributing editor of the International Comparative Legal Guide - Private Equity. The guide, now in its eighth edition, is one of the most comprehensive comparative guides to private equity (PE), serving as a valuable reference source for in-house counsel and international legal practitioners, covering common issues in PE laws and regulations – including structuring matters, governance matters, and transaction terms in 26 jurisdictions.
Members of Dechert’s Global Private Equity practice provide an overview of market trends and an industry outlook for 2022 and beyond, as well as the country chapters relating to the United Kingdom and the United States.
2022 and Beyond: Private Equity Outlook for 2023
The global PE industry, riding a years-long boom in dealmaking that slowed only slightly at the onset of the COVID-19 pandemic on its way to a record-setting 2021, has remained resilient through the first half of 2022, despite oncoming economic headwinds. Though off its 2021 pace, PE deal activity by both U.S.-based and European sponsors in early 2022 remained in line with historical trends in terms of deal value and as a percentage of overall M&A activity, mostly buttressed by large-cap PE dealmaking. While global PE fundraising weakened in the first half of 2022 compared to 2021, fundraising in the U.S., particularly for buyout funds, kept pace with previous years, as PE returns currently represent a more attractive opportunity for investors than public equity markets do.
Read the full expert chapter “2022 and Beyond: Private Equity Outlook for 2023”
United States: Private Equity 2022
U.S. PE deal activity surged to record-setting levels in 2021, with both deal volume and deal values reaching unprecedented highs. Performance in 2021 was fuelled by continued access to significant levels of dry powder, robust fundraising, easy access to debt at attractive rates and strong economic headwinds. Deal activity in the first half of 2022 has been tepid in comparison to 2021. Macroeconomic and geopolitical factors have created a more challenging environment for M&A and injected uncertainty into the outlook for 2022. Fundraising activity has continued in the first half of 2022, but at lower levels than the same period in 2021, and the market is crowded. A significant number of PE firms have been raising capital and competing for investments from large institutional allocators, many of whom committed their entire allocation for 2022 early in the year.
Read the full chapter “United States: Private Equity 2022”
United Kingdom: Private Equity 2022
Based on a report by the British Venture Capital Association (“BVCA”), buyout investment in the UK by BVCA members increased by 31% year-on-year to £24.7 billion, of which 53% can be classed as mega buyouts. Total UK fundraising in 2021 reached £16.7 billion across 119 funds. The resurgence of PE activity that brought 2020 to a close continued in 2021, with the highest deal volumes and values ever recorded, despite uncertainty caused by COVID-19, economic and geopolitical factors. A notable trend in the PE market between 2020 and 2022 (among many such trends) has been the number of take-private transactions by PE investors. This demonstrates the amount of dry powder available in the PE markets and the perceived relative value of public listed targets.
Read the full chapter “United Kingdom: Private Equity 2022”
Access the full guide: International Comparative Legal Guide - Private Equity 2022
International Comparative Legal Guide – Private Equity 2021
Contributors: Markus Bolsinger, Siew Kam Boon, Abbi Cohen, Darshak Dholakia, Christopher Field, Daniel Hawthorne, Jeffrey Katz, Sarah Kupferman, John LaRocca, John Markland, Joshua Milgrim, Allie Misner Wasserman, Sam Whittaker.
In this edition the authors analyzed private equity fundraising and M&A activity in a year of unprecedented health crises and social upheaval.
International Comparative Legal Guide – Private Equity 2020
Contributors: Markus Bolsinger, Siew Kam Boon, Abbi Cohen, Darshak Dholakia, Christopher Field, Daniel Hawthorne, John LaRocca, John Markland, Joshua Milgrim, Allie Misner Wasserman.
In this edition the authors analyzed high deal multiples driven by the intense competition for assets caused by the presence of significant levels of dry powder and a relative scarcity of targets on which to deploy it.
International Comparative Legal Guide – Private Equity 2019
Contributors: Markus Bolsinger, Darshak Dholakia, Mark Evans, Christopher Field, Daniel Hawthorne, John LaRocca, John Markland, Joshua Milgrim, Allie Misner Wasserman.
In this edition the authors analyzed heavy competition across all asset classes among increased liquidity.