Middle market hedge fund managers are coping with a contradiction—as the world unravels due to Covid-19, the S&P 500 is nearing an all-time high. While the markets respond favorably to progress on a vaccine, money managers are looking to a future with a high degree of uncertainty around a possible U.S. recovery amid weak fundamentals. On March 11, the ... READ MORE >
COVID-19 stifles middle market private equity dealmaking
U.S. middle market private equity deal and fundraising activity slowed through the second quarter as the global health pandemic continues to ravage American business. According to PitchBook, the number of closed middle market funds – defined as individual funds with assets under management of $1 billion or less – was only 35 during the second quarter, ... READ MORE >
The back-to-school debate and its impact on the real economy
“Enjoy your summer!” teachers say when the school bells ring a final time and children race home to their families to begin summer. But summer has been far from enjoyable for U.S. families who carry the weight of making back-to-school plans amid an uncertain COVID-19 landscape. Yes, the warm weather has sent folks outside – many have enjoyed beach and ... READ MORE >
Global M&A remains soft, but that could change as elections approach
Global mergers and acquisitions have had a slower start to 2020 compared to other years as companies continue to work through business challenges resulting from the coronavirus. Through June, the total value of announced deals was $327 billion, according to PitchBook. At that pace, the year would end with $654 billion of annual deal value, an 18% drop ... READ MORE >
What registered investment advisers can expect from the SEC in a changed economy
Even as the coronavirus disrupts many conventions and traditions of the financial services industry, one regulatory ritual has continued, albeit in digital form: the Securities and Exchange Commission’s compliance examinations with registered investment advisers. These examinations, which are now conducted virtually by the SEC’s Office of Compliance ... READ MORE >
As private equity firms hold onto investments, investors get restless
The coronavirus pandemic hasn’t slowed interest by private equity firms putting their cash to work in distressed firms. Although deal activity was down from March to April, general partners in private equity firms are still searching for value wherever they can find it. And they have the means to do it. After years of solid fundraising – which ... READ MORE >
The future of work: Five predictions for private equity firms
As businesses around the world consider how they return to work amid the coronavirus pandemic, private equity professionals are already making plans for widespread changes to their workforce. Like other businesses, private equity firms have limited non-essential travel, closed offices and imposed strict limits on in-person contact. But it has come at a ... READ MORE >
Global M&A nosedives, and what comes next is still in question
Global mergers and acquisitions plunged in April as companies worked through business challenges resulting from the coronavirus. Through April and the first part of May, the total value of announced deals was $207 billion, according to Bloomberg, beginning what is expected to be a year over year decline of more than 50% for the second quarter. M&A has ... READ MORE >
As private equity firms prepare to deploy cash, a backlash looms
As many middle market businesses struggle to stay above water, private equity firms are well-positioned to provide a lifeline. They have been preparing for this moment for years, heeding a lesson from the Great Recession that they need capital to deploy when the valuations are low and struggling companies are receptive to investment. Indeed, the ... READ MORE >
For private equity firms, valuations become a difficult question
Many RSM clients with portfolio companies have recently completed their year-end audits and are now preparing to do their first-quarter valuations. But while that has been a relatively straightforward proposition in recent years, it is anything but this year. How do private equity firms determine the fair value of their holdings when those values seem to ... READ MORE >